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The graph at right depicts a monopolistically competitive firm maximizing profits where marginal cost equals Monopolistically Competitive Firm marginal revenue at q* units of output.
The graph at right depicts a monopolistically competitive firm maximizing profits where marginal cost equals Monopolistically Competitive Firm marginal revenue at q* units of output. Suppose the monopolistically competitive firm is earning a short-run economic profit. MC Use the line drawing tool to draw and label an appropriate demand line in relation to the profit maximizing quantity SRA of q*. Label it 'D'. Price ($) Carefully follow the instructions above, and only draw the required object. " a* MR Output
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