Use the Following for Questions 22-31

Multiple Choice

Use the following for questions 22-31.
Exhibit: Profit Maximization in Monopolistic Competition

-(Exhibit: Profit Maximization in Monopolistic Competition) In determining the price in monopolistic competition:

A) the price to the firm is given by supply and demand for the industry.
B) the firm is a price taker.
C) the firm applies the marginal decision rule.
D) A and B are true.