Question

In the short​ run, a monopolistically competitive firm will A. select the rate of output where price equals marginal cost. B. make a profit. C. not advertise because the effects will not be realized until the long run. D. select the rate of output where marginal revenue equals marginal cost.

Answer 1

Option D is correct.

Select the rate of output where marginal revenue equals marginal cost

Step-by-step explanation:

Reason: Profit = Revenue - Cost

To maximize profit we take the derivative. Results in in Max Profit occurring at Marginal Revenue = Marginal Cost