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20 January, 15:54

For a monopolistically competitive firm, marginal revenue A. is greater than the price. B. equals the price. C. is less than the price. D. and the price are unrelate

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  1. 20 January, 17:29
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    The correct answer is option C.

    Explanation:

    A monopolistic firm is a price maker. It faces a downward sloping demand curve which also reflects the average revenue or price. The profit is maximized by equating marginal revenue and marginal cost.

    The marginal revenue curve is also a downward sloping curve and it lies below the demand or average revenue curve.
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