As a manager of a factory producing widgets in a monopolistically competitive ma

Question

As a manager of a factory producing widgets in a monopolistically competitive market, you are facing the situation depicted the graph shown. As a good manager, your goal is to maximize profits or minimize losses to your firm. To acheive your go how many widgets would you produce, what price would you charge for them, and how much revenue would you earn? Price ATC and cost. per unit MC $75 68 54 Demand 0 630 800 Quantity 880 850 MR 630 widgets, priced at $68, thus earning $42,840 in revenue O 630 widgets, priced at $38, thus earning $23,940 in revenue 630 widgets, priced at 68, thus earning $4,410 in revenue O 800 widgets, priced at $54, thus earning $43,200 in revenues 630 widgets, priced at $75, thus earning 547,250 in revenues

Explanation / Answer

Answer
option first
The firm maximizes profit or minimize loss at MR=MC where is charges $68 and produces 630 units
total revenue=P*Q=68*630=42840

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