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The Following Graph Shows the Costs and Revenues of a Typical

Question 40

Multiple Choice

The following graph shows the costs and revenues of a typical firm operating in a monopolistically competitive industry.
The following graph shows the costs and revenues of a typical firm operating in a monopolistically competitive industry.    -What is the profit maximization criterion for a monopolistically competitive firm? A) An output level that is equal to capacity output. B) Price equals average cost. C) Price equals marginal cost. D) Marginal revenue equals average cost. E) Marginal revenue equals marginal cost.
-What is the profit maximization criterion for a monopolistically competitive firm?


A) An output level that is equal to capacity output.
B) Price equals average cost.
C) Price equals marginal cost.
D) Marginal revenue equals average cost.
E) Marginal revenue equals marginal cost.

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