If a Monopolistically Competitive Firm Is Producing 800 Units of Output

question 125

Multiple Choice

If a monopolistically competitive firm is producing 800 units of output and the marginal revenue from producing the 800th unit of output is $2.25 and the marginal cost is $2.25, which of the following is true?

• A)The firm should increase production to maximize profit.
• B)The difference between marginal revenue and marginal cost (MR - MC)at the 1,200th unit is positive.
• C)The firm should decrease production to maximize profit.
• D)The firm maximizing profit.

---

Definitions:

Vitamins A

A group of fat-soluble retinoids important for vision, skin health, and immune function.

Pigmented Marks

Skin marks or spots that are darker than the surrounding area due to the overproduction of melanin.

Age Spots

Flat, brown, gray, or black spots on the skin that typically occur in areas exposed to the sun over time.

Melanoma

A type of skin cancer that develops from melanocytes, cells that produce pigments.