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.

---

Definitions:

Sample Mean

The average calculated from a sample set of data, used as an estimate of the population mean.

Point Estimator

The sample statistic, such as x, s, or p, that provides the point estimate of the population parameter.

Simple Random Samples

A subset of a statistical population in which each member of the subset has an equal probability of being chosen.

Population Size

The total number of individuals or units in the population being studied.