In Monopolistic Competition, in the Short Run a Firm Maximises

question 60

Multiple Choice

In monopolistic competition, in the short run a firm maximises its profit by selecting an output at which marginal cost equals

• A) zero.
• B) price.
• C) marginal revenue.
• D) average total cost.

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Definitions:

Demand Curve

A graphical representation that shows the relationship between the quantity of a good that consumers are willing to purchase and its price.

Consumers

Individuals or groups who purchase goods and services for personal use and not for manufacturing or resale purposes.

Microeconomic Theory

The study of individual, household, and firm behaviors in decision making and allocation of resources.

Emphasis

A special importance, value, or prominence given to something.