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20 January, 16:36

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.

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  1. 20 January, 17:01
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    Option D is correct.

    Select the rate of output where marginal revenue equals marginal cost

    Explanation:

    Reason: Profit = Revenue - Cost

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