Use the following for questions 43-51.
Exhibit: Firms in Monopolistic Competition

-(Exhibit: Firms in Monopolistic Competition) In Panel (b), the profit-maximizing quantity of output is generated by the intersection at point:
A) Q.
B) R.
C) S.
D) T.

Question

Use the following for questions 43-51.
Exhibit: Firms in Monopolistic Competition
 
-(Exhibit: Firms in Monopolistic Competition) In Panel (b), the profit-maximizing quantity of output is generated by the intersection at point:
A) Q. 
B) R. 
C) S. 
D) T.

Quizplus · Accepted Answer

In monopolistic competition, the profit-maximizing quantity of output is determined where marginal cost (MC) intersects marginal revenue (MR), which is depicted at point S in a typical diagram.

Use the Following for Questions 43-51