Refer to Figure 15.2. If We Do Hair is maximizing profit as a monopolistically competitive firm, its total revenue equals

A) $1,280.
B) $1,320.
C) $1,200.
D) $600.

Question

Refer to Figure 15.2. If We Do Hair is maximizing profit as a monopolistically competitive firm, its total revenue equalsA)  $1,280.B)  $1,320.C)  $1,200.D)  $600.

Anthony Mikhael · Accepted Answer

Final Answer : A, Explanation :  In monopolistic competition, profit maximization occurs where marginal cost equals marginal revenue. If the figure indicates that this point corresponds to a total revenue of $1,280, then that is the correct answer.

Refer to Figure 15.2. If We Do Hair is maximizing profit as a monopolistically competitive firm, its total revenue equals

A) $1,280.
B) $1,320.
C) $1,200.
D) $600.

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