{"id":46399,"date":"2024-04-15T22:11:48","date_gmt":"2024-04-15T22:11:48","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=46399"},"modified":"2024-04-15T22:11:48","modified_gmt":"2024-04-15T22:11:48","slug":"the-short-run-equilibrium-level-of-output-for-monopolistic-competitor-is-given-by-the-point-where","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/the-short-run-equilibrium-level-of-output-for-monopolistic-competitor-is-given-by-the-point-where\/","title":{"rendered":"The short run equilibrium level of output for monopolistic competitor is given by the point where"},"content":{"rendered":"<p>\r\n    <!-- Check if it's an AMP page -->\r\n            <!-- Non-AMP version -->\r\n        <div class=\"mcq-container\" data-quiz-id=\"quizState_6a97e19e0997e\">\r\n                                            <div class=\"option\" data-option-key=\"option1\" data-is-correct=\"false\">\r\n                    P = SMC                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option2\" data-is-correct=\"false\">\r\n                    P = SAC                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option3\" data-is-correct=\"true\">\r\n                    the MR curve intersects the SMC curve                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option4\" data-is-correct=\"false\">\r\n                    the MR curve intersects the SMC curve from below and P = AVC                <\/div>\r\n                            \r\n            <!-- Feedback messages for non-AMP -->\r\n            <div class=\"feedback\" data-feedback=\"wrong\">Answer is Right!<\/div>\r\n            <div class=\"feedback\" data-feedback=\"right\">Answer is Wrong!<\/div>\r\n        <\/div>\r\n\r\n        <script>\r\n        document.addEventListener('DOMContentLoaded', function () {\r\n            var containers = document.querySelectorAll('.mcq-container');\r\n\r\n            containers.forEach(function(container) {\r\n                var options = container.querySelectorAll('.option');\r\n                var feedbackSelect = container.querySelector('[data-feedback=\"select\"]');\r\n                var feedbackWrong = container.querySelector('[data-feedback=\"wrong\"]');\r\n                var feedbackRight = container.querySelector('[data-feedback=\"right\"]');\r\n\r\n                options.forEach(function(option) {\r\n                    option.addEventListener('click', function() {\r\n                        var selectedOption = option.getAttribute('data-option-key');\r\n                        var isCorrect = option.getAttribute('data-is-correct') === 'true';\r\n\r\n                        \/\/ Remove previous selections\r\n                        options.forEach(function(opt) {\r\n                            opt.classList.remove('correct', 'incorrect');\r\n                        });\r\n\r\n                        \/\/ Add the correct\/incorrect class\r\n                        if (isCorrect) {\r\n                            option.classList.add('correct');\r\n                            feedbackRight.hidden = false;\r\n                            feedbackWrong.hidden = true;\r\n                        } else {\r\n                            option.classList.add('incorrect');\r\n                            feedbackRight.hidden = true;\r\n                            feedbackWrong.hidden = false;\r\n                        }\r\n\r\n                        \/\/ Hide select feedback\r\n                        feedbackSelect.hidden = true;\r\n                    });\r\n                });\r\n            });\r\n        });\r\n        <\/script>\r\n    \r\n    <!--more--><\/p>\n<p>The correct answer is: C. the MR curve intersects the SMC curve.<\/p>\n<p>A monopolistic competitor is a firm that faces a downward-sloping demand <div class=\"youtube-subscribe-container\">\r\n        <a href=\"https:\/\/www.youtube.com\/channel\/UCNHT8lW-JmLC68rjBfZhdkg?sub_confirmation=1\" target=\"_blank\" class=\"youtube-subscribe-button\">\r\n            <span class=\"youtube-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 <div class=\"telegram-channel-container\">\r\n        <a href=\"https:\/\/t.me\/pscnotes2025\" target=\"_blank\" class=\"telegram-channel-button\">\r\n            <span class=\"telegram-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 496 512\">\r\n                    <path fill=\"white\" d=\"M248,8C111,8,0,119,0,256s111,248,248,248s248-111,248-248S385,8,248,8z M362,177L320,367c-3,14-10,18-20,14l-56-41l-27,26 c-3,3-5,5-10,5l4-63L323,196c5-5-1-7-8-3l-98,62l-42-13c-9-3-10-9,2-14l162-63C351,160,365,164,362,177z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Join Our Telegram Channel\r\n        <\/a>\r\n    <\/div> 576 512\">\r\n                    <path d=\"M549.7 124.1c-6.3-23.7-24.8-42.3-48.3-48.6C458.8 64 288 64 288 64S117.2 64 74.6 75.5c-23.5 6.3-42 24.9-48.3 48.6-11.4 42.9-11.4 132.3-11.4 132.3s0 89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Subscribe on YouTube\r\n        <\/a>\r\n    <\/div> curve but has a relatively large number of close substitutes. This means that the firm can raise its price without losing all of its customers, but it cannot raise its price too high or customers will switch to a competitor.<\/p>\n<p>The short-run equilibrium level of output for a monopolistic competitor is given by the point where the marginal revenue (MR) curve intersects the short-run marginal cost (SMC) curve. At this point, the firm is maximizing its profits.<\/p>\n<p>The MR curve is the firm&#8217;s marginal revenue curve. It shows how much revenue the firm will earn from selling an additional unit of output. The SMC curve is the firm&#8217;s marginal cost curve. It shows how much it costs the firm to produce an additional unit of output.<\/p>\n<p>The MR curve intersects the SMC curve from below at the point where the firm is maximizing its profits. At this point, the firm is producing the quantity of output where the marginal revenue is equal to the marginal cost. This is the profit-maximizing level of output.<\/p>\n<p>The other options are incorrect because they do not represent the profit-maximizing level of output for a monopolistic competitor.<\/p>\n<p>Option A is incorrect because it states that the profit-maximizing level of output is given by the point where P = SMC. However, this is not the case. The profit-maximizing level of output is given by the point where MR = SMC.<\/p>\n<p>Option B is incorrect because it states that the profit-maximizing level of output is given by the point where P = SAC. However, this is not the case. The profit-maximizing level of output is given by the point where MR = SMC.<\/p>\n<p>Option D is incorrect because it states that the profit-maximizing level of output is given by the point where MR intersects the SMC curve from below and P = AVC. However, this is not the case. The profit-maximizing level of output is given by the point where MR = SMC.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Subscribe on YouTube<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The short run equilibrium level of output for monopolistic competitor is given by the point where<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/the-short-run-equilibrium-level-of-output-for-monopolistic-competitor-is-given-by-the-point-where\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" 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