In the above figure, when this monopolistically competitive firm ...

[Tazate]

In the above figure, when this monopolistically competitive firm produces its profit-maximizing output, it sets a per-unit price of
 
  A) 13.
  B) 11.
  C) 10.
  D) 8.

Question 2

Under rate-of-return regulation, average cost pricing
 
  A) is inflated so the firm can make economic profits.
  B) includes variable costs but not a cost for capital.
  C) includes what they consider to be a fair rate of return on investment.
  D) includes a cost for capital that generates an above normal rate of return.

[tkempin]

Answer to Question 1

B

Answer to Question 2

C

[Tazate]

Gracias!

[frankwu0507]

Excellent