Table 10.1 shows the output, price, and total cost for a monopolistic competitor. The profit-maximizing price for the firm is:
Table 10.1.

Question

Table 10.1 shows the output, price, and total cost for a monopolistic competitor. The profit-maximizing price for the firm is:​ ​
Table 10.1.
​

Quizplus · Accepted Answer

The profit-maximizing price for a monopolistic competitor is where marginal revenue equals marginal cost. Looking at the table, we can see that at a quantity of 7, the marginal cost is $21 and the marginal revenue (change in total revenue with a change in quantity) is also $21. Therefore, the profit-maximizing price for the firm is $21.

Table 101 Shows the Output, Price, and Total Cost for a a Monopolistic