13.2 How a Monopolistically Competitive Firm Maximizes Profit in the Short Run2) A monopolistically competitive firm maximizes profit whereA) price = marginal revenue.B) price > marginal cost.C) marginal revenue > average revenue.D) total revenue > marginal cost. Answer:
B3) Unlike a perfectly competitive firm, for a monopolistically competitive firm
BFigure 13-4Figure 13-4 shows short-run cost and demand curves for a monopolistically competitive firm in the market for designer watches. 8) Refer to Figure 13-4. If the firm represented in the diagram is currently producing and selling Qa units, what is the price charged?
C9) Refer to Figure 13-4.What is the area that represents the total revenue made by the firm?
CDiff: 2 Page Ref: 429-430