Use the Following to Answer Questions

Multiple Choice

Use the following to answer questions:
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 so that:

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