Price Quantity Total Cost

$10 10 $120

9 2 170

8 30 200

7 40 240

6 50 300

5 60 380

4 70 480

A monopolistic competitive firm that seeks to maximize profits (producing at the level of output where MR = MC) will sell __________ units and charge a price of __________ .

What letter is correct?

a) 10; $10

b) 60; $5

c) 20; $9

d) 40; $7