Use the figure below to answer the following questions. Figure 13.2.1
-Refer to Figure 13.2.1.If this firm is in monopolistic competition,it produces output
A)of 40 units.
B)of 60 units.
C)of 80 units.
D)that is less than 40 units.
E)equal to the output of competing firms.

Question

Use the figure below to answer the following questions.  Figure 13.2.1
-Refer to Figure 13.2.1.If this firm is in monopolistic competition,it produces output
A)of 40 units. 
B)of 60 units. 
C)of 80 units. 
D)that is less than 40 units. 
E)equal to the output of competing firms.

Quizplus · Accepted Answer

In monopolistic competition, firms produce where marginal cost (MC) equals marginal revenue (MR). Without the figure, the exact output level cannot be determined, but based on typical models, if option A suggests a specific output level, it is chosen assuming it aligns with the MC=MR condition.

Use the Figure Below to Answer the Following Questions