For a monopolistically competitive firm, at the profit-maximizing quantity of output,
A)price exceeds marginal cost.
B)marginal revenue exceeds marginal cost.
C)marginal cost exceeds average revenue.
D)price equals marginal revenue.

Question

Quizplus · Accepted Answer

In monopolistic competition, firms have some market power, allowing them to set prices above marginal cost at the profit-maximizing output level.

For a Monopolistically Competitive Firm, at the Profit-Maximizing Quantity of Output