MCQOPTIONS
Saved Bookmarks
| 1. |
Which of the following is true regarding the production and pricing decisions of monopolistically competitive firms? Monopolistically competitive firms choose the quantity at which marginal cost equals ? |
| A. | marginal revenue and then use the demand curve to determine the price consistent with this quantity |
| B. | average total cost and then use the supply curve to determine the price consistent with this quantity |
| C. | marginal revenue and then use the supply curve to determine the price consistent with this quantity |
| D. | average total cost and then use the demand curve to determine the price consistent with this quantity |
| Answer» B. average total cost and then use the supply curve to determine the price consistent with this quantity | |