Ask Question
27 June, 20:47

To maximize its profit, a monopolistically competitive firm chooses its level of output by looking for the level of output at which a. price equals marginal cost. b. marginal revenue equals marginal cost. c. average total cost is minimized. d. All of the above are correct.

+2
Answers (1)
  1. 27 June, 20:58
    0
    b. marginal revenue equals marginal cost.

    Explanation:

    To maximize its profit, a monopolistically competitive firm chooses its level of output by looking for the level of output at which marginal revenue equals marginal cost.

    Marginal revenue is defined as the additional revenue that will be generated by saling one more unit. On the other hand, marginal cost is the cost generated by producing one more unit.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “To maximize its profit, a monopolistically competitive firm chooses its level of output by looking for the level of output at which a. ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers