A Monopolistically Competitive Firm Is Producing an Output Level at Which

question 147

Multiple Choice

A monopolistically competitive firm is producing an output level at which marginal revenue is less than marginal cost.This firm should __________ quantity and __________ price to increase profit or reduce losses.

• A)increase, increase
• B)increase; decrease
• C)decrease; increase
• D)decrease; decrease
• E)increase; not change

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