4 4) The figure below shows the price and quantity for a monopolistically competitive firm that operates in theshort run. The firm will set a price and quantity equal to;MC ATC1MRD102030405060Quantity (units per day)O a. No correct answer.O b. $3 and 20 unitsO c. $1 and 20 unitsO d. $2 and 40 unitsPrice and costs (dollars per unit)

In monopolistic competition marginal revenue lies below the demand curve. Profit is maximised at a…

4) The figure below shows the price and quantity for a monopolistically competitive firm that operates in the short run. The firm will set a price and quantity equal to; MC ATC 1 MR 10 20 30 40 50 60 Quantity (units per day) No correct answer. b. $3 and 20 units O c. $1 and 20 units O d. $2 and 40 units Price and costs (dollars per unit)