Given the monopolistic competitve firm output, marginal cost, marginal revenue & average variable cost, what output recommendation would you make for the firm.
A monopolistically competitive firm is producing 50 units of output in the short run where marginal cost is $3.00, average total costs are $5.00, price is $4.50, average variable cost is $4.00, and marginal revenue is $3.00. Explain how much profit is the firm making? Illustrate what output recommendation would you make for the firm?