These are the cost and revenue curves associated with a monopolistically competitive firm.
According to the graph shown, the monopolistically competitive firm will produce:
A. where MR = MC and will charge according to D.
B. where D = MC and will charge according to MR.
C. where D = MC and will charge according to ATC.
D. where MR = MC and will charge according to ATC.
Answer: A
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The money wage rate is constant when moving along
A) only the potential GDP line. B) the aggregate supply curve, the potential GDP line, and the aggregate demand curve. C) only the aggregate supply curve. D) only the aggregate supply curve and the potential GDP line. E) neither the aggregate supply curve nor the potential GDP line.
The marginal productivity theory of income states that a person's total income is determined by
A) how much the individual works. B) how profitable the firm the individual works for is. C) how much the individual has inherited. D) the amount and productivity of factors of production the individual owns.
It is imperative that banks maintain a reputation for safety in order that
a. regulators can reduce their efforts. b. bank runs can be reduced or prevented. c. customers will not be afraid to ask for loans. d. stockholders can earn a high rate of return.
What is a market demand curve?
a. a table showing how much of a product an individual is willing and able to buy b. a table showing how much of a product a market is willing and able to buy c. a graph showing how much of a product an individual is willing and able to buy d. a graph showing how much of a product a market is willing and able to buy