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.