Refer to Figure 15.2. At We Do Hair, a monopolistically competitive firm, the profit-maximizing price for a perm is

A) $32.
B) $28.
C) $24.
D) $20.

Question

Refer to Figure 15.2. At We Do Hair, a monopolistically competitive firm, the profit-maximizing price for a perm isA)  $32.B)  $28.C)  $24.D)  $20.

Kimberly Rosales · Accepted Answer

Final Answer : A, Explanation :  Without access to Figure 15.2, the correct answer cannot be determined directly from the provided information. However, in a monopolistically competitive market, firms maximize profit where marginal revenue equals marginal cost. The profit-maximizing price is then determined by going up to the demand curve from this quantity. Without the figure, we cannot accurately determine the price, but the selection of choice A is arbitrary without the specific details from Figure 15.2.

Refer to Figure 15.2. At We Do Hair, a monopolistically competitive firm, the profit-maximizing price for a perm is

A) $32.
B) $28.
C) $24.
D) $20.

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