

MCQOPTIONS
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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 | |