Question: Consider the graph below. Suppose qMC = 300, pMC = $20, and ATC = $24 at 300 units. Is the profit-maximizing firm in monopolistic competition

Consider the graph below. Suppose qMC = 300, pMC = $20, and ATC = $24 at 300 units. Is the profit-maximizing firm in monopolistic competition making a profit or loss, and by how much? Price MC ATC ATC Firm Demand = AR MR = MC Quantity Output MR Firm $6,000 profit $1.200 profit -$1.200 loss O -$7.200 loss

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