A monopolistically competitive firm faces the following demand curve for its product: The firm has total fixed costs of $100 and a constant marginal cost of $25 per unit. The firm will maximize profit with the production of
A)4 units of output.
B)10 units of output.
C)16 units of output.
D)22 units of output.

Question

A monopolistically competitive firm faces the following demand curve for its product:  The firm has total fixed costs of $100 and a constant marginal cost of $25 per unit. The firm will maximize profit with the production of
A)4 units of output. 
B)10 units of output. 
C)16 units of output. 
D)22 units of output.

Quizplus · Accepted Answer

The Answer of A monopolistically competitive firm faces the following demand curve for its product:  The firm has total fixed costs of $100 and a constant marginal cost of $25 per unit. The firm will maximize profit with the production of
A)4 units of output. 
B)10 units of output. 
C)16 units of output. 
D)22 units of output.

A Monopolistically Competitive Firm Faces the Following Demand Curve for Its