Final answer:
In a monopolistically competitive market, the profit-maximizing output level is determined where MR equals MC, and for quantity 5, the cost is $62. With the selling price at $13 per unit, the total revenue is $65 for 5 units, resulting in a profit of $3.
Step-by-step explanation:
In a monopolistically competitive market, firms choose the profit-maximizing level of output where marginal revenue equals marginal cost (MR = MC). According to the provided cost structure, when output is at quantity 5, which corresponds to producing 5 units, this is the profit-maximizing output level. The costs associated with producing these 5 units are given as $62. As the price is $13 per unit, the total revenue from selling 5 units would be 5 units multiplied by the price of $13 per unit, resulting in a total revenue of $65. Given that the total cost to produce these 5 units is $62, the resulting profit would be the total revenue of $65 minus the total cost of $62, equaling a $3 profit.