Based on marginal revenue/marginal cost analysis, describe how output and price are determined in monopolistically competitive markets. Discuss what firms try to maximize, what rule they need to follow to do this, and how this determines the amount they will produce and the price they will charge?© BrainMass Inc. brainmass.com October 10, 2019, 3:36 am ad1c9bdddf
Monopolies maximize their profit where MC = MR. The difference between MR and MC is the profit per unit. So the profit per ...
This solution describes how output and price are determined in monopolistically competitive markets.