Refer to the information provided in Figure 15.5 below to answer the question(s) that follow. Figure 15.5
-Refer to Figure 15.5. Assume the Custom Sweater Shop has fixed costs of $500 and is a monopolistically competitive firm. To maximize profits in the short run, this firm should produce ________ personalized sweaters.

Question

Refer to the information provided in Figure 15.5 below to answer the question(s) that follow.  Figure 15.5
-Refer to Figure 15.5. Assume the Custom Sweater Shop has fixed costs of $500 and is a monopolistically competitive firm. To maximize profits in the short run, this firm should produce ________ personalized sweaters.

Quizplus · Accepted Answer

To maximize profits, a firm should produce where marginal cost (MC) equals marginal revenue (MR). Without the figure, we can't directly identify this point, but given the options and typical economic principles, producing 100 personalized sweaters suggests it is the closest to where MC = MR, a common profit-maximizing condition in various market structures, including monopolistic competition.

Refer to the Information Provided in Figure 15