contestada

Advanced Printing Systems is a firm in a monopolistically competitive market. If its marginal cost is $18 per unit in the short run, if it is maximizing profits, and if it is selling at the equilibrium quantity, what is its marginal revenue?

Respuesta :

Answer: Marginal Revenue = $18 per unit

Explanation:

The profit maximizing condition for a firm in a monopolistic  competitive market is at MR = MC.

So, the marginal revenue of the firm is equal to the marginal cost of the firm.

In this question, the firm's marginal cost is $18 per unit in the short run and it is a profit maximizing firm. Thus, its marginal revenue is $18 per unit.

Otras preguntas