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Figure: Firms in Monopolistic Competition
-(Figure: Firms in Monopolistic Competition)Use Figure: Firms in Monopolistic Competition.In panel (A)of the figure,the profit-maximizing quantity of output is determined by the intersection at point:
A)K.
B)P.
C)N.
D)O.

Question

Use the following to answer question:
Figure: Firms in Monopolistic Competition 
-(Figure: Firms in Monopolistic Competition)Use Figure: Firms in Monopolistic Competition.In panel (A)of the figure,the profit-maximizing quantity of output is determined by the intersection at point:
A)K. 
B)P. 
C)N. 
D)O.

Quizplus · Accepted Answer

Panel (A) shows the profit-maximizing quantity where marginal revenue equals marginal cost (MR=MC) at point N. This determines the quantity of output that the firm produces to make profits.

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