Exhibit 24-7
Refer to Exhibit 24-7. A monopolistic competitive firm earns a total profit of __________ when it produces the profit maximizing level of output.

Question

Exhibit 24-7 
Refer to Exhibit 24-7. A monopolistic competitive firm earns a total profit of __________ when it produces the profit maximizing level of output.

Quizplus · Accepted Answer

The profit maximizing output for a monopolistic competitive firm is where MR=MC, which is at a price of $65 and a quantity of 30. At this output level, the firm's total revenue is $1,950 and its total cost is $1,400, resulting in a total profit of $550.

Exhibit 24-7 Refer to Exhibit 24-7. a Monopolistic Competitive Firm Earns a Firm