The output quantity which the monopolistically competitive firm produce to maximize profits is when, "the marginal cost equals the marginal revenue."
In the monopolistically competitive firm, a monopolist can determine its profit-maximizing price and quantity by analyzing the marginal revenue and marginal costs of producing an extra unit. If the marginal revenue exceeds the marginal cost, then the firm should produce the extra unit.
The profit-maximizing quantity is the one at which the marginal revenue of the last unit was exactly equal to the marginal cost. Thus, producing any more or less would decrease profits.
Hence, the monopolistically competitive firm produce output quantity when the marginal cost equals the marginal revenue.
To learn more about the marginal cost and marginal revenue here:
https://brainly.com/question/14156745
#SPJ4
