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To maximize its profit, a monopolistically competitive firm chooses its level of output by looking for the level of output at which a. price equals marginal cost. b. marginal revenue equals marginal cost. c. average total cost is minimized. d. All of the above are correct.

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marialejandray

Answer:

b. marginal revenue equals marginal cost.

Explanation:

To maximize its profit, a monopolistically competitive firm chooses its level of output by looking for the level of output at which marginal revenue equals marginal cost.

Marginal revenue is defined as the additional revenue that will be generated by saling one more unit. On the other hand, marginal cost is the cost generated by producing one more unit.

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