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 set a price of

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 set a price of

Quizplus · Accepted Answer

To maximize profits, a monopolistically competitive firm will produce where marginal cost (MC) equals marginal revenue (MR) and then set the price based on the demand curve at that quantity. Without the figure, we can't directly observe the MC and MR intersections or the corresponding demand price. However, given the options and the context, the correct answer is inferred based on typical economic principles applied to monopolistic competition scenarios.

Refer to the Information Provided in Figure 15