Figure 16-6
-Refer to Figure 16-6.If a firm in a monopolistically competitive market was producing the level of output depicted as Q_d in panel (d) ,it would

Question

Figure 16-6 -Refer to Figure 16-6.If a firm in a monopolistically competitive market was producing the level of output depicted as Q_d in panel (d),it would

Quizplus · Accepted Answer

At output level Q_d, the firm is not maximizing its profit because it is not producing at the quantity where marginal cost equals marginal revenue, which is the profit-maximizing condition for firms in monopolistic competition.

Figure 16-6 -Refer to Figure 16-6.If a Firm in a Monopolistically Competitive