Smith's bakery shop is a firm in monopolistic competition. What is the shape of the firm's marginal revenue curve?

Question

Answer

It is the same as the demand curve.

Answer

It is a downward-sloping curve, half as steep as the demand curve for Smith's baked goods.

Answer

It is a vertical line at the quantity produced.

Answer

It is a downward-sloping curve, twice as steep as the demand curve for Smith's baked goods.

Answer

It is a horizontal line at the market price of Smith's baked goods.

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