A monopolistically competitive firm minimizes its losses by producing where MR = MC as long as

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In a monopolistically competitive market, a firm minimizes its losses or maximizes its profits by producing at the level where marginal revenue (MR) equals marginal cost (MC). This rule applies as long as the price (P) is greater than the average variable cost (AVC), ensuring the firm covers its variable costs and contributes to fixed costs, even if it's not covering total costs.

A Monopolistically Competitive Firm Minimizes Its Losses by Producing Where