If a Monopolistically Competitive Firm Is Incurring Losses,then at the Profit-Maximizing

question 127

Multiple Choice

If a monopolistically competitive firm is incurring losses,then at the profit-maximizing output amount

• A) price is above the average total cost curve.
• B) price is below the average total cost curve.
• C) price is equal to marginal revenue.
• D) price is less than marginal revenue.
• E) average total cost equals marginal cost.