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-Use the Above Figure

Question 159

Multiple Choice

  -Use the above figure. For this monopolistic competitor, which of the following is INCORRECT? A)  The profit-maximizing rate of output is qe, and the profit-maximizing price is P. B)  The demand curve shows a direct relationship between price and quantity demanded. C)  The profit-maximizing rate of output is at E, where MR intersects MC. D)  A downward sloping marginal revenue curve that is below the demand curve.
-Use the above figure. For this monopolistic competitor, which of the following is INCORRECT?


A) The profit-maximizing rate of output is qe, and the profit-maximizing price is P.
B) The demand curve shows a direct relationship between price and quantity demanded.
C) The profit-maximizing rate of output is at E, where MR intersects MC.
D) A downward sloping marginal revenue curve that is below the demand curve.

Correct Answer:

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