The graph depicts a monopolistically competitive firm. In the short run, this monopolistically competitive firm will set the price at
A) $55 and produce 45 units of output.
B) $65 and produce 35 units of output.
C) $50 and produce 35 units of output.
D) $52 and produce 50 units of output.

Question

The graph depicts a monopolistically competitive firm.  In the short run, this monopolistically competitive firm will set the price at
A) $55 and produce 45 units of output. 
B) $65 and produce 35 units of output. 
C) $50 and produce 35 units of output. 
D) $52 and produce 50 units of output.

Quizplus · Accepted Answer

The Answer of The graph depicts a monopolistically competitive firm.  In the short run, this monopolistically competitive firm will set the price at
A) $55 and produce 45 units of output. 
B) $65 and produce 35 units of output. 
C) $50 and produce 35 units of output. 
D) $52 and produce 50 units of output.

The Graph Depicts a Monopolistically Competitive Firm