The first step to be undertaken by a profit-maximizing monopolistic competitor wanting to decide what price to charge is to
A) determine total revenue, total cost, and profit
B) select the profit maximizing quantity to produce
C) determine what price to charge for the product
D) determine average costs, total revenue, and profit

Question

Quizplus · Accepted Answer

The first step for a profit-maximizing monopolistic competitor is to select the profit-maximizing quantity to produce. This is because the quantity where marginal cost equals marginal revenue determines the most profitable level of production, which then influences the price setting.

The First Step to Be Undertaken by a Profit-Maximizing Monopolistic