A monopoly
A. Maximizes profits at the output level where MR > MC.
B. Produces less output than a competitive industry, ceteris paribus.
C. Maximizes profits at the output where P = MR.
D. Charges the same price as a competitive industry, ceteris paribus.
Answer: B
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Refer to the information provided in Figure 15.1 below to answer the question(s) that follow. Below are cost curves for Dom's Barber Shop, a monopolistically competitive firm. 
Figure 15.1 Refer to Figure 15.1. If Dom's maximizes profits, it ________ of $80.
A. has a total cost B. receives a total revenue C. suffers a loss D. earns a profit