If a Monopolistically Competitive Firm Is Producing 50 Units of Output

question 4

Multiple Choice

If a monopolistically competitive firm is producing 50 units of output where marginal cost equals marginal revenue, total cost is $1,674 and total revenue is $2,000, its average profit is

• A)$326.
• B)$40.
• C)$6.52.
• D)impossible to determine without additional information.

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Definitions:

Triggering Event

A specific occurrence that causes a process to start, or significantly impacts the course of an ongoing situation.

Product Opportunities

Potential areas or ideas within a market where a new product could be developed to meet a consumer need or demand.

Entrepreneur

An individual who initiates, organizes, and operates a business venture, assuming most of the risks and enjoying most of the rewards.

Environmental Forces

Various external factors and conditions that affect an organization's performance and decision-making processes, including economic, political, regulatory, and cultural factors.