The following figure shows the demand and cost curves faced by a monopolistic competitor.

-Refer to the figure above. The optimal quantity produced by the monopolistic competitor is ________.

Question

The following figure shows the demand and cost curves faced by a monopolistic competitor.

-Refer to the figure above. The optimal quantity produced by the monopolistic competitor is ________.

Quizplus · Accepted Answer

The optimal quantity produced by a monopolistic competitor is determined at the point where marginal cost (MC) intersects with marginal revenue (MR). Choice C represents this intersection point, indicating the quantity at which the monopolistic competitor maximizes profit.

The Following Figure Shows the Demand and Cost Curves Faced