The figure is drawn for a monopolistically competitive firm

The figure is drawn for a monopolistically competitive firm. In order to maximize profit, the firm will charge a price of $16. $24. $32. $36.

Solution

In monopolistic competition,Producers have a degree of control over price.

Firm maximizes profits at MR=MC

At MR=MC

Quantity produced is 24 units

The firm charges price based on demand curve at this quantity.

At Quantity=24,demand curve shows price=36$