Refer to the information provided in Figure 15.2 below to answer the question(s) that follow. Figure 15.2
-Refer to Figure 15.2. If We Do Hair is maximizing profit as a monopolistically competitive firm, it is earning a profit of

Question

Refer to the information provided in Figure 15.2 below to answer the question(s) that follow.  Figure 15.2
-Refer to Figure 15.2. If We Do Hair is maximizing profit as a monopolistically competitive firm, it is earning a profit of

Quizplus · Accepted Answer

In a monopolistically competitive market, a firm maximizes profit where marginal revenue equals marginal cost. The profit is calculated as (Price - Average Total Cost) * Quantity. Without the specific details from Figure 15.2, such as the price, quantity, and average total cost at the profit-maximizing output, it's not possible to directly calculate the profit. However, based on the information given that choice C is correct, it implies that at the profit-maximizing quantity, the difference between the price and the average total cost, multiplied by the quantity sold, equals $320.

Refer to the Information Provided in Figure 15