In the Short Run, a Firm in a Monopolistic Competition

Multiple Choice

In the short run, a firm in a monopolistic competition will produce the amount of output where its

A) marginal revenue equals marginal cost and will set its price according to the demand for that output level.
B) marginal revenue equals marginal cost and takes the market price as given.
C) average revenue equals average cost and will set its price according to the demand for that output level.
D) average revenue equals its average cost and takes the market price as given.