A monopolistically competitive firm faces demand given by this equation: P = 50 - Q. It has no fixed costs and its marginal cost is $20 per unit. What price will the firm charge when it is maximizing its profits?
A) $20
B) $25
C) $30
D) $35

Question

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The Answer of A monopolistically competitive firm faces demand given by this equation: P = 50 - Q. It has no fixed costs and its marginal cost is $20 per unit. What price will the firm charge when it is maximizing its profits?
A) $20
B) $25
C) $30
D) $35

A Monopolistically Competitive Firm Faces Demand Given by This Equation