Table of contents

0. Basic Principles of Economics1h 5m
1. Reading and Understanding Graphs59m
2. Introductory Economic Models1h 10m
3. The Market Forces of Supply and Demand2h 26m
4. Elasticity2h 26m
5. Consumer and Producer Surplus; Price Ceilings and Floors3h 45m
6. Introduction to Taxes and Subsidies1h 46m
7. Externalities1h 12m
8. The Types of Goods1h 13m
9. International Trade1h 16m
10. The Costs of Production2h 35m
11. Perfect Competition2h 23m
12. Monopoly2h 13m
13. Monopolistic Competition1h 9m
14. Oligopoly1h 26m
15. Markets for the Factors of Production1h 26m
16. Income Inequality and Poverty35m
17. Asymmetric Information, Voting, and Public Choice39m
18. Consumer Choice and Behavioral Economics1h 16m

13. Monopolistic Competition

Monopolistic Competition Profit on the Graph

Microeconomics

13. Monopolistic Competition

Monopolistic Competition Profit on the Graph

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Multiple Choice

The price that the firm will charge at its profit-maximizing output is:

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Verified step by step guidance

Identify the profit-maximizing output level by finding the quantity where the Marginal Cost (MC) curve intersects the Marginal Revenue (MR) curve. This is the point where the firm maximizes its profit.

Once the profit-maximizing quantity is determined, locate this quantity on the horizontal axis of the graph.

From the profit-maximizing quantity, move vertically upwards to the Demand (D) curve. This point on the demand curve indicates the price that consumers are willing to pay for that quantity.

Read the price level on the vertical axis that corresponds to the point on the demand curve. This is the price the firm will charge at its profit-maximizing output.

Verify that this price is consistent with the options provided in the problem statement, ensuring it matches the correct answer.