Which statement is true?

A) The monopolistic competitor has a perfectly elastic demand curve.
B) The monopolistic competitor may make a profit in the long run.
C) The monopolistic competitor operates at the minimum point of her ATC curve.
D) None of these statements are true.

Monopolistic Competitor

A firm operating in a monopolistic competition market, offering a unique product but competing with several other firms in terms of price, quality, and branding.

Elastic Demand Curve

A representation of the demand for goods or services that are very sensitive to changes in price, indicating that a small change in price leads to a large change in quantity demanded.

ATC Curve

A graph that represents the average total cost of production at different levels of output, typically U-shaped due to economies and diseconomies of scale.