The short run equilibrium level of output of the monopolistic competitor is given by

Name: The short run equilibrium level of output of the monopolistic competitor is given by
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Question

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In the short run equilibrium for a monopolistic competitor, marginal cost (MC) equals marginal revenue (MR). This is because firms in monopolistic competition, like in perfect competition and monopoly, produce where their marginal costs of production equal their marginal revenues from sales to maximize profit.

The Short Run Equilibrium Level of Output of the Monopolistic