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Use the Figure Below to Answer the Following Questions

Question 42

Multiple Choice

Use the figure below to answer the following questions.
Use the figure below to answer the following questions. Figure 14.2.3 -Refer to Figure 14.2.3. Assume this firm faces demand curve D₂. To maximize economic profit, this firm in monopolistic competition will charge a price of ________ and produce an output of ________ units. A) $40; 100 B) $90; 220 C) $80; 200 D) $55; 140 E) $70; 100
Figure 14.2.3
-Refer to Figure 14.2.3. Assume this firm faces demand curve D₂. To maximize economic profit, this firm in monopolistic competition will charge a price of ________ and produce an output of ________ units.


A) $40; 100
B) $90; 220
C) $80; 200
D) $55; 140
E) $70; 100

Correct Answer:

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