Product differentiation in monopolistically competitive markets ensures that,for profit-maximizing firms,what will result

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In a monopolistically competitive market, firms engage in product differentiation to make their products unique and stand out from competitors. This allows them to have some market power and charge a price above marginal cost. Therefore, the profit-maximizing firm will choose a price where marginal revenue equals marginal cost, but this price will be above average total cost. So, the correct choice is B, price will exceed marginal cost.

Product Differentiation in Monopolistically Competitive Markets Ensures That,for Profit-Maximizing Firms,what