-The Above Figure Shows the Demand and Cost Curves for a Firm

question 98

Multiple Choice

-The above figure shows the demand and cost curves for a firm in monopolistic competition. The firm maximizes its profit by

• A) producing 8 units at a price of $5 each.
• B) producing 8 units at a price of $15 each.
• C) producing 4 units at a price of $20 each.
• D) producing 12 units at a price of $10 each.

---

Definitions:

Power Distance

The degree to which individuals in a society accept the uneven distribution of power among members.

System Justification

A theory that suggests people have a psychological need to view existing social, economic, and political systems as fair, legitimate, and justified.

Ingroup Bias

The inclination to prefer individuals from one's own group over those from outside groups.

Collective Action

Efforts by groups to resist and change the status quo in the service of group goals.