The Profit-Maximizing Rule for a Firm in a Monopolistically Competitive

question 615

Multiple Choice

The profit-maximizing rule for a firm in a monopolistically competitive market is to always select the quantity at which

• A)marginal revenue is equal to marginal cost.
• B)average total cost is equal to marginal revenue.
• C)average total cost is equal to price.
• D)average revenue exceeds average total cost.

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Definitions:

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