A Profit-Maximizing Firm in a Monopolistically Competitive Market Is Characterized

question 179

Multiple Choice

A profit-maximizing firm in a monopolistically competitive market is characterized by which of the following?

• A)marginal cost exceeds marginal revenue
• B)average revenue equals marginal cost
• C)price exceeds marginal cost
• D)All of the above are correct.

---

Definitions:

Profit

The difference between what it costs to make and sell a product and what a customer pays for it.