Asked by LaTasha Simmons on May 28, 2024
Verified
(Figure: Profits in Monopolistic Competition) Use Figure: Profits in Monopolistic Competition.In panel (B) of the figure,the profit-maximizing quantity of output is determined by the intersection at point:
A) J.
B) K.
C) L.
D) M.
Profit-Maximizing Quantity
The level of output at which a firm achieves the maximum possible profit, where marginal revenue equals marginal cost.
Panel
A group of people gathered to discuss, analyze, or recommend on a particular subject matter or to conduct a study.
Intersection
The point or area where two or more lines or paths cross or meet.
- Assess diagrams illustrating enterprises and market scenarios in monopolistic competition, with a focus on price formulation, production output, economic strengths, and weaknesses.
Verified Answer
AP
Allison PersaudMay 30, 2024
Final Answer :
B
Explanation :
The profit-maximizing quantity of output is determined by the intersection of the marginal revenue and marginal cost curves, which occurs at point K in panel (B) of the figure.
Learning Objectives
- Assess diagrams illustrating enterprises and market scenarios in monopolistic competition, with a focus on price formulation, production output, economic strengths, and weaknesses.