Refer to the following graph to answer the following questions:

-The short-run profit-maximizing output for the monopolistic competitive firm is ________ units per day.
A) 0 (zero)
B) 200
C) 400
D) 600
E) 800

Question

Refer to the following graph to answer the following questions:
 
-The short-run profit-maximizing output for the monopolistic competitive firm is ________ units per day.
A) 0 (zero) 
B) 200 
C) 400 
D) 600 
E) 800

Quizplus · Accepted Answer

The profit-maximizing output for a monopolistic competitive firm is where marginal revenue (MR) equals marginal cost (MC). In the given graph, the MR curve intersects the MC curve at output level Q = 400. Therefore, the short-run profit-maximizing output for the firm is 400 units per day.

Refer to the Following Graph to Answer the Following Questions