Which of the following is true regarding the production and pricing decisions of monopolistically competitive firms? Monopolistically competitive firms choose the quantity at which marginal cost equals

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Monopolistically competitive firms, like all firms, aim to produce at a quantity where marginal cost equals marginal revenue to maximize their profits. However, because monopolistically competitive firms have some control over the price due to product differentiation, they use the demand curve to determine the price consistent with the quantity they have chosen. Therefore, monopoly competitive firms choose the quantity at which marginal cost equals marginal revenue and then use the demand curve to determine the price consistent with this quantity.

Which of the Following Is True Regarding the Production and Pricing