The profit-maximizing rule, expressed as _____, is adhered to by firms operating in a market that is _____.
A) MC MR; monopolistically competitive but not perfectly competitive
B) MC = MR; both monopolistically competitive and perfectly competitive
C) MC MR; perfectly competitive but not monopolistically competitive
D) MC = MR; either monopolistically competitive or perfectly competitive, depending on the costs of production

Question

The profit-maximizing rule, expressed as _____, is adhered to by firms operating in a market that is _____.
A) MC > MR; monopolistically competitive but not perfectly competitive
B) MC = MR; both monopolistically competitive and perfectly competitive
C) MC > MR; perfectly competitive but not monopolistically competitive
D) MC = MR; either monopolistically competitive or perfectly competitive, depending on the costs of production

Quizplus · Accepted Answer

MC = MR is the profit-maximizing rule for firms in both monopolistic competition and perfect competition.

The Profit-Maximizing Rule, Expressed as _____, Is Adhered to by Firms