A Monopolistically Competitive Firm Faces the Following Demand Curve for Its

question 86

Multiple Choice

A monopolistically competitive firm faces the following demand curve for its product:
The firm has total fixed costs of $20 and a constant marginal cost of $5 per unit.The firm will maximize profit with the production of

• A)6 units of output.
• B)8 units of output.
• C)10 units of output.
• D)12 units of output.

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