A monopolistic competitor has fixed costs of $100 and marginal costs of $10 per unit. What is its marginal revenue at its equilibrium price and quantity?
A) $10
B) $11
C) $1,100
D) $2,000

Question

Quizplus · Accepted Answer

In a monopolistic competition, at equilibrium, marginal cost (MC) equals marginal revenue (MR). Given the marginal cost is $10 per unit, the marginal revenue at equilibrium is also $10.

A Monopolistic Competitor Has Fixed Costs of $100 and Marginal