The short-run equilibrium for a profit maximizing monopolistically competitive firm is at price = $29, average total cost = $22. The firm's marginal cost is $18. Which of the following is true?

A.) More firms will be attracted into the industry   B.) The firm could decrease the price and increase profits   C.) Per-unit profit is $11 D.) The firm could increase the price and increase profits   E.) The firm is operating in the upward-sloping portion of average total cost (ATC)

Similarily, a neighborhood convenience store is generally able to charge a higher price for its candy bars than the town’s Wal-Mart Super Center because the convenience store:

A.) differentiates based on location   B.) differentiates based on style   C.) differentiates based on quality   D.) advertises that its candy bars are identical to those sold at Wal-Mart   E.) differentiates based on high barriers to entry, such as patents.