Multiple Choice
When a firm maximises its profit, which of the following is correct for firms in monopolistic competition and perfect competition?
A) P = ATC always for firms in both perfect competition and monopolistic competition.
B) P = MC for both types of firms.
C) P = MR = MC for firms in perfect competition, and P > MR = MC for firms in monopolistic competition.
D) P > MR = MC for firms in both perfect competition and monopolistic competition.
E) MR = MC for firms in perfect competition and MR > MC for firms in monopolistic competition.
Correct Answer:
Verified
Correct Answer:
Verified
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