A Firm in Monopolistic Competition Makes Its Decisions on Quantity

Multiple Choice

A firm in monopolistic competition makes its decisions on quantity and price by

A) taking price as given from the market and producing where MR = MC.
B) taking both price and quantity as given from the market.
C) producing where MR = MC and setting the price for this quantity from the demand curve.
D) taking quantity as given from the market and setting the price for this quantity from the demand curve.
E) producing where MR = MC and setting the price so that P = MR = MC.