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Question 249

Multiple Choice

Use the following to answer questions:
Scenario: Monopolistically Competitive Firm
For a monopolistically competitive firm, Q = 160 - P; MC = 20 + 2Q; and TC = 20Q + Q2 + 20.
-(Scenario: Monopolistically Competitive Firm) Given the information in the scenario Monopolistically Competitive Firm, what is the profit-maximizing level of output for this firm in the short run?


A) 160 units
B) 20 units
C) 35 units
D) 180 units

Correct Answer:

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