Multiple Choice
So long as price exceeds average variable cost,in the model of monopolistic competition,a firm maximizes profits by producing where:
A) the difference between marginal revenue and marginal cost is maximized.
B) marginal cost equals marginal revenue.
C) marginal revenue equals price.
D) the difference between price and marginal cost is maximized.
E) price equals marginal cost.
Correct Answer:

Verified
Correct Answer:
Verified
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