In the short run, a firm in a monopolistic competition will ...

[Mr3Hunna]

In the short run, a firm in a monopolistic competition will produce the amount of output where its
 
  A) marginal revenue equals marginal cost and will set its price according to the demand for that amount of output.
  B) marginal revenue equals marginal cost and takes the market price as given.
  C) average revenue equals average cost and will set its price according to the demand for that amount of output.
  D) average revenue equals its average cost and takes the market price as given.

Question 2

Free riding is not a problem in the market for a private good because
 
  A) people who do not pay for the good can be excluded from consumption.
  B) the good is a rival good.
  C) the market eliminates the problem of externalities.
  D) The question errs because free riding is a problem in providing private goods.

[swimkari]

Answer to Question 1

A

Answer to Question 2

A

[Mr3Hunna]

Thank you

[swimkari]

No problemo