In the above figure, the profit-maximizing output and price for this monopolistically competitive firm are
A) 10,000 units at a price of $10 per unit.
B) 10,000 units at a price of $5 per unit.
C) 13,000 units at a price of $7 per unit.
D) 12,000 units at a price of $8 per unit.
A
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Which of the following statements is TRUE?
A) At the efficient quantity, marginal social benefit equals marginal social cost. B) Marginal social cost increases as the quantity produced decreases. C) Marginal social benefit decreases as the quantity consumed decreases. D) If marginal social benefit exceeds marginal social cost by as much as possible, production is efficient.
Suppose a single firm supplies all the ceramic windlasses in the U.S. The demand curve that firm faces is
a. elastic everywhere b. unit elastic everywhere c. inelastic everywhere d. perfectly inelastic everywhere e. elastic at the profit-maximizing quantity