Exhibit 24-8 Refer to Exhibit 24-8. A profit-maximizing monopolistic competitive firm that produces the level of output where MR = MC will produce ______________ units of output and charge a price of ______________.
A)3; $260
B)4; $232.50
C)5; $210
D)6; $191.67
E)7; $175.71

Question

Exhibit 24-8  Refer to Exhibit 24-8. A profit-maximizing monopolistic competitive firm that produces the level of output where MR = MC will produce ______________ units of output and charge a price of ______________.
A)3; $260 
B)4; $232.50 
C)5; $210 
D)6; $191.67 
E)7; $175.71

Quizplus · Accepted Answer

At the quantity where MR=MC, the corresponding price can be found on the demand curve. At 5 units of output, the price is $210.