Suppose a Monopolistically Competitive Firm's Output Where Marginal Revenue Equals

question 186

Multiple Choice

Suppose a monopolistically competitive firm's output where marginal revenue equals marginal cost is 66 units and the price corresponding to this quantity is $18.If the average total cost at this output is $16.55, its total profit is

• A)$1188.
• B)$1092.30.
• C)$95.70.
• D)$1.45.

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Definitions:

Sale

A transaction between two parties where the buyer receives goods, service, or asset in exchange for money.

Accounts Receivable

Funds that customers owe to a company for products or services that have been provided but not yet compensated for.

Accounts Payable

A liability to a creditor, carried on an open account, usually for purchases of goods and services.

Prepaid Expenses

Costs paid in advance for goods or services to be used or received in the future, classified as current assets on a balance sheet.