The profit-maximizing rule MC = MR is followed by firms operating in:
A)monopolistic competition but not perfect competition.
B)perfect competition but not monopolistic competition.
C)either monopolistic competition or perfect competition,depending on the costs of production.
D)both monopolistic competition and perfect competition.

Question

Quizplus · Accepted Answer

The profit-maximizing rule MC = MR is followed by firms operating in both monopolistic competition and perfect competition. This rule applies to all competitive markets where firms aim to produce at a level where marginal cost equals the marginal revenue to maximize profits.

The Profit-Maximizing Rule MC = MR Is Followed by Firms