When a firm maximizes its profit, which of the following is correct for firms in monopolistic competition and perfect competition?
A) P = MC for both types of firms.
B) P = MR = MC for firms in perfect competition and P > MR = MC for firms in monopolistic competition.
C) MR = MC for firms in perfect competition and MR > MC for firms in monopolistic competition.
D) P > MR = MC for firms in both perfect competition and monopolistic competition.
E) P = ATC always for firms in both perfect competition and monopolistic competition.
B
You might also like to view...
Country X produces only one good. It produced 12,500 units of a good during a particular year. If the price of the good during that year was $100 and the price of the good during the previous year was $95, the nominal GDP of the country is ________
A) $875,000 B) $1,187,500 C) $2,450,000 D) $1,250,000
A tax bracket is
A) the percent of taxable income paid in taxes at a specific income bracket. B) the type of tax structure for which a range of taxes applies. C) the income range within which a particular tax rate applies. D) the range, from the high to the low tax rate, of a particular type of tax.