Table 16-4
This table shows the demand schedule, marginal cost, and average total cost for a monopolistically competitive firm.
-Refer to Table 16-4. What price will this firm charge to maximize profit?
A)$25
B)$30
C)$35
D)$40

Question

Table 16-4
This table shows the demand schedule, marginal cost, and average total cost for a monopolistically competitive firm. 
-Refer to Table 16-4. What price will this firm charge to maximize profit?
A)$25 
B)$30 
C)$35 
D)$40

Quizplus · Accepted Answer

To maximize profit, a firm will set its price where marginal cost equals marginal revenue. Without the table, we assume the correct choice based on typical pricing strategies.

Table 16-4 This Table Shows the Demand Schedule, Marginal Cost, and Average