Figure 10.12 -Refer to Figure 10.12.The monopolistic competitor's profit-maximising output is A)Q₁ units B)Q₂ units C)Q₃ units D)Q₄ units

Question

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The profit-maximizing output for a monopolistic competitor is determined at the point where marginal cost (MC) equals marginal revenue (MR). Without seeing Figure 10.12, the correct answer cannot be determined visually, but based on standard economic theory, the profit-maximizing quantity is where MC = MR. Since the specific figure is not provided, the correct choice is based on the assumption that option B correctly identifies this point according to the given figure.

Figure 10.12 -Refer to Figure 10.12.The Monopolistic Competitor's Profit-Maximising Output Is