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26 February, 14:20

The profit-maximizing rule for a firm in a monopolistically competitive market is to always select the quantity at which

a. average total cost is equal to marginal revenue.

b. marginal revenue is equal to marginal cost.

c. average total cost is equal to price.

d. average revenue exceeds average total cost.

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  1. 26 February, 15:49
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    The profit-maximizing rule for a firm in a monopolistically competitive market is to always select the quantity at which marginal revenue is equal to marginal cost, the basic decision that every company should take is the amount it will produce. This decision will depend on the price at which you can sell it and the cost of production. The achievement of the objective of every company to maximize the benefits is reached when the difference between the total costs and the total income is maximum.
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