In a monopolistically competitive market,the seller maximizes profits by

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In a monopolistically competitive market, the seller has a downward-sloping demand curve, which means they can increase their profits by setting the price higher than the marginal cost. However, they must also consider the effect of the price on the quantity sold. Therefore, the seller maximizes profits by setting the price where MR=MC, i.e., the point where the marginal revenue equals the marginal cost. This ensures that the additional revenue generated by selling an extra unit equals the additional cost incurred in producing that unit, resulting in maximum profits.

In a Monopolistically Competitive Market,the Seller Maximizes Profits by