For a monopolistically competitive firm,
a. marginal revenue and price are the same.
b. average revenue and price are the same.
c. at the profit-maximizing quantity of output, price equals marginal cost.
d. at the profit-maximizing quantity of output, price equals the minimum of average total cost.
b
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The MPC can be defined as that fraction of a:
A. change in income that is not spent. B. change in income that is spent. C. given total income that is not consumed. D. given total income that is consumed.
In macroeconomic analysis, the representative consumer
A) denotes the consumer with the average amount of income. B) plays the role of a stand-in for all consumers in the economy. C) is the consumer who bargains with firms for all workers in the economy. D) is always a misleading fiction.