Author Question: What is the profit-maximizing rule for a monopolistically competitive firm? A) to produce a ... (Read 71 times)

jon_i · **on:** Jun 29, 2018

What is the profit-maximizing rule for a monopolistically competitive firm?

A) to produce a quantity that maximizes market share
B) to produce a quantity that maximizes total revenue
C) to produce a quantity such that price equals marginal cost
D) to produce a quantity such that marginal revenue equals marginal cost

Question 2

If an industry is made up of five identical firms, the four-firm concentration ratio is

A) 5. B) 20. C) 80. D) 100.