A monopolistically competitive firm has the following cost structure: The firm faces the following demand curve:
If the government forces this firm to produce at its efficient scale, it will
A)produce 3 units and make $9.
B)produce 4 units and make $6.
C)produce 5 units and lose $5.
D)produce 7 units and lose $49.

Question

A monopolistically competitive firm has the following cost structure:  The firm faces the following demand curve: 
If the government forces this firm to produce at its efficient scale, it will
A)produce 3 units and make $9. 
B)produce 4 units and make $6. 
C)produce 5 units and lose $5. 
D)produce 7 units and lose $49.

Quizplus · Accepted Answer

The Answer of A monopolistically competitive firm has the following cost structure:  The firm faces the following demand curve: 
If the government forces this firm to produce at its efficient scale, it will
A)produce 3 units and make $9. 
B)produce 4 units and make $6. 
C)produce 5 units and lose $5. 
D)produce 7 units and lose $49.

A Monopolistically Competitive Firm Has the Following Cost Structure