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(Solved): The following figure shows a firm that operates in a monopolistic competition Price 11 10 5 4 MO ATC ...



The following figure shows a firm that operates in a monopolistic competition Price 11 10 5 4 MO ATC MR 6 8 10 12 14 16 18 20 22 24 26 28 Quantity O decides to exit this market D Refer to the figure above. This 's profit maximizing choice happens when it O charges a price equal to its marginal cost O charges a price above its marginal cost

The following figure shows a firm that operates in a monopolistic competition
Refer to the figure above. This s profit maxim
The following figure shows a firm that operates in a monopolistic competition Refer to the figure above. This 's profit maximizing choice happens when it charges a price equal to its marginal cost decides to exit this market charges a price above its marginal cost


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First option is the correct answer.
When the marginal revenue equals the marginal cost, firms profit maximization happens.
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