If a Monopolistically Competitive Firm Is Producing the Profit-Maximizing Level

question 180

Multiple Choice

If a monopolistically competitive firm is producing the profit-maximizing level of output and is earning an economic profit in the short run:

• A) price is less than average total cost.
• B) price is less than marginal cost.
• C) marginal revenue is less than marginal cost.
• D) marginal revenue equals marginal cost.

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