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Figure: Profits in Monopolistic Competition
-(Figure: Profits in Monopolistic Competition) In panel (A) of the figure Profits in Monopolistic Competition, the profit-maximizing quantity of output is determined by the intersection at point:
A) G.
B) F.
C) H.
D) C.

Question

Use the following to answer questions:
Figure: Profits in Monopolistic Competition 
-(Figure: Profits in Monopolistic Competition) In panel (A) of the figure Profits in Monopolistic Competition, the profit-maximizing quantity of output is determined by the intersection at point:
A) G. 
B) F. 
C) H. 
D) C.

Quizplus · Accepted Answer

The profit-maximizing quantity of output is determined by the intersection of the marginal revenue curve (MR) and the marginal cost curve (MC). In panel (A) of the figure, this intersection occurs at point G.

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