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A Monopolistically Competitive Firm Faces Demand Given by This Equation

Question 112

Multiple Choice

A monopolistically competitive firm faces demand given by this equation: P = 50 - Q. It has no fixed costs and its marginal cost is $20 per unit. What quantity will the firm produce when it is maximizing its profits?


A) 10
B) 15
C) 20
D) 25

Correct Answer:

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