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.

---

Definitions:

Corporate Tax Rate

The percentage of a corporation's profits taken as tax by the government.

Strategic Goal

A strategic goal is a long-term, overarching target that an organization aims to achieve, guiding decision-making and resource allocation.

Financial Structures

The specific mixture of long–term debt and equity that a company uses to finance its operations and growth.

Equity

Equity represents an owner's share in the assets of a company, remaining after deducting liabilities.