Use the figure below to answer the following questions.

Figure 14.2.2
-Refer to Figure 14.2.2.To maximize economic profit,this firm in monopolistic competition produces an output

Question

Use the figure below to answer the following questions.
  
Figure 14.2.2
-Refer to Figure 14.2.2.To maximize economic profit,this firm in monopolistic competition produces an output

Quizplus · Accepted Answer

The firm in monopolistic competition maximizes economic profit by producing an output where marginal revenue equals marginal cost. In Figure 14.2.2, this occurs at an output of 40 units.

Use the Figure Below to Answer the Following Questions