The table below summarizes the information possessed by a firm in a monopolistically competitive market. Quantity demanded is in thousands of units.

-Refer to the table above. The optimal price charged by the monopolistic competitor is ________.
A) $4.00
B) $3.60
C) $5.20
D) $2.80

Question

The table below summarizes the information possessed by a firm in a monopolistically competitive market. Quantity demanded is in thousands of units.
  
-Refer to the table above. The optimal price charged by the monopolistic competitor is ________.
A) $4.00 
B) $3.60 
C) $5.20 
D) $2.80

Quizplus · Accepted Answer

The optimal price for a monopolistic competitor is where marginal cost equals marginal revenue, which is typically provided in the table. Assuming $4.00 is where this condition is met, it is the optimal price.

The Table Below Summarizes the Information Possessed by a Firm