The Following Figure Shows the Cost Curves (ATC, Average Total

question 92

Multiple Choice

The following figure shows the cost curves (ATC, average total cost; MC, marginal cost) of a firm that operates in a monopolistic competition market, as well as the demand (D) facing the firm and the marginal revenue (MR) of this firm.

-Refer to the figure above.What is the profit-maximizing price that this firm should charge in the short run?

• A) $3
• B) $4.50
• C) $6.50
• D) $4

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