Question

A monopolistically competitive firm faces the following demand schedule for its product: Price ($) 30 27...

A monopolistically competitive firm faces the following demand schedule for its product:

Price ($)

30

27

24

21

18

15

12

9

6

3
Quantity

3

6

9

12

15

18

21

24

27

30


The firm has total fixed costs of $9 and a constant marginal cost of $3 per unit. The firm will maximize profit with

a.

30 units of output.
b.

9 units of output.
c.

15 units of output.
d.

21 units of output.
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