its profit-maximizing quantity of How does a monopolistic competitor choose outp

Question

its profit-maximizing quantity of How does a monopolistic competitor choose output? O O O The firm will produce at a level of output where marginal revenue is less than marginal cost. The firm will produce at a level of output where marginal revenue equals marginal cost. The firm will produce at a level of output where marginal cost equals demand. Question 14 5 pts After determining its profit-maximizing quantity of output, how does a monopolistic competitor choose its price? The firm will look at the marginal revenue curve to find out what it could charge for that quantity of output. O The firm will look at the average cost curve to find out what it could charge for that quantity of output O O The firm will look at the demand curve to find out what it could charge for that quantity of

Explanation / Answer

a) A monopolist competitor will produce at the point where the marginal cost is equal to the marginal revenue. The answer is "B".

b) "The firm will look at the demand curve to find out what it could charge for that quantity of output" and set the price accordingly.

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