In monopolistic competition, profit is maximised when the amount produced is such that

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In monopolistic competition, as in all market structures, profit is maximized when the amount produced is such that marginal revenue equals marginal cost. This principle ensures that the firm is producing at a level where the cost of producing one more unit is exactly equal to the revenue gained from selling that unit, optimizing profit.

In Monopolistic Competition, Profit Is Maximised When the Amount Produced