-The short-run profit-maximizing output level for a monopolistically competitive firm is the point at which

Question

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The short-run profit-maximizing output level for a monopolistically competitive firm, as well as for firms in other types of markets, is determined at the point where marginal revenue (MR) equals marginal cost (MC). This is because at this point, the cost of producing one more unit is exactly equal to the revenue gained from selling that unit, maximizing profit.

-The Short-Run Profit-Maximizing Output Level for a Monopolistically Competitive Firm