A Monopolistically Competitive Firm Faces Demand Given by This Equation

question 73

Multiple Choice

A monopolistically competitive firm faces demand given by this equation: P = 50 - Q. It has no fixed costs and its marginal cost is $20 per unit. What price will the firm charge when it is maximizing its profits?

• A) $20
• B) $25
• C) $30
• D) $35

---

Definitions:

Genie

A pseudonym for a feral child who was the subject of studies on language acquisition and critical periods after being isolated during her childhood.

Infant Language Development

The process by which young children learn and develop their ability to communicate through speech and understanding of language.

Active Conversation Partner

Someone who actively participates in a conversation, engaging through listening and providing feedback.

Language Style

The variation in speech and writing which reflects differences in situation, purpose, and audience.