Figure: Profit Maximization in Monopolistic Competition (Figure: Profit Maximization

Multiple Choice

Figure: Profit Maximization in Monopolistic Competition (Figure: Profit Maximization in Monopolistic Competition) Look at the figure Profit Maximization in Monopolistic Competition.A firm in monopolistic competition will maximize profits by producing the level of output at which:

A) P = MC.
B) MR = MC.
C) P = MR.
D) price minus ATC (i.e., economic profit per unit) is the largest.