If a monopolistically competitive firm is incurring losses,then at the profit-maximizing output amount

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Quizplus · Accepted Answer

If a monopolistically competitive firm is incurring losses, it means that its price is less than its average total cost. In order to minimize the loss, the firm would need to reduce its output to the point where the price is equal to the average total cost. Therefore, at the profit-maximizing output amount, the price would be below the average total cost curve.

If a Monopolistically Competitive Firm Is Incurring Losses,then at the Profit-Maximizing