In monopolistic competition, why would a firm avoid increasing output to lower its average total cost?
a. Marginal revenue would increase above the total cost of the increased output.
b. Marginal revenue would fall below the total cost of the total output.
c. Total revenue would increase above total cost for the total output.
d. Marginal revenue would fall below the marginal cost of the increased output.
d. Marginal revenue would fall below the marginal cost of the increased output.
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Explain what should happen to the demand curve of monopolistically competitive firms as consumers increasingly perceive their products to be more like commodities. What industrial structure does this lead to?
What will be an ideal response?
Most American workers
a. are employed in the goods-producing sector. b. are employed by government. c. are employed in the service-producing sector. d. are employed in the agricultural sector.