Use the following to answer questions:
Figure: Firms in Monopolistic Competition
-(Figure: Firms in Monopolistic Competition) In panel (A) of the figure Firms in Monopolistic Competition, the profit-maximizing quantity of output is determined by the intersection at point:
A) K.
B) P.
C) N.
D) O.

Question

Use the following to answer questions:
Figure: Firms in Monopolistic Competition 
-(Figure: Firms in Monopolistic Competition) In panel (A) of the figure Firms in Monopolistic Competition, the profit-maximizing quantity of output is determined by the intersection at point:
A) K. 
B) P. 
C) N. 
D) O.

Quizplus · Accepted Answer

In monopolistic competition, the profit-maximizing quantity is where marginal cost (MC) equals marginal revenue (MR). Point N represents this intersection.

Use the Following to Answer Questions