fer to Exhibit 14-4 If the blue jean firm maximizes profit, it will: A. earn $64,000 in profit this month. B. earn $30,000 in profit this month. C. earn zero profit in this month. D. earn $112,000 in profit this month.

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter14: Monopolistic Competition And Product Differentiation
Section: Chapter Questions
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The following diagram depicts firms in monopolistically competitive markets.
$1
MC
$50
48
45
34
4 7 111
10
AC
Blue Jeans per Month
(in thousands)
Demand
Marginal Revenue
Refer to Exhibit 14-4. If the blue jean firm maximizes profit, it will:
A. earn $64,000 in profit this month.
B. earn $30,000 in profit this month.
C. earn zero profit in this month.
D. earn $112,000 in profit this month.
Transcribed Image Text:The following diagram depicts firms in monopolistically competitive markets. $1 MC $50 48 45 34 4 7 111 10 AC Blue Jeans per Month (in thousands) Demand Marginal Revenue Refer to Exhibit 14-4. If the blue jean firm maximizes profit, it will: A. earn $64,000 in profit this month. B. earn $30,000 in profit this month. C. earn zero profit in this month. D. earn $112,000 in profit this month.
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