A monopolistic competitor is currently producing 2,000 units of output; price is $100,marginal revenue is $80,average total cost is $130,marginal cost is $60,and average variable cost is $60.The firm should
A) raise price because the firm is losing money.
B) keep the price the same because the firm is producing at minimum average variable cost.
C) raise price because the last unit of output decreased profit by $30.
D) lower price because the next unit of output increases profit by $20.
Correct Answer:
Verified
Q46: Q47: All of the following could be a Q48: In a monopolistically competitive industry in long-run![]()
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents