In the short run, the profit-maximizing monopolistically competitive firm will produce the rate of output at which

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In the short run, the profit-maximizing monopolistically competitive firm will produce the rate of output at which MR = MC. This is because the firm's marginal revenue (MR) is the additional revenue received from selling one more unit, and it will continue to produce units until the additional revenue gained from selling one more unit is equal to the additional cost of producing that unit, which is the marginal cost (MC). At this point, the firm will be maximizing its profits, because producing any additional units beyond this point would result in a decrease in profits.

In the Short Run, the Profit-Maximizing Monopolistically Competitive Firm Will