A monopolistically competitive firm chooses

A) the quantity of output to produce, but all firms in the market agree upon a single price.
B) the price, but competition in the market determines the quantity.
C) the price, but output is determined by a cartel production quota.
D) the quantity of output to produce, but the price of its output is determined by demand.

Quantity of Output

The total amount of goods or services produced by a company or an economy in a given period.

Monopolistically Competitive Firm

A firm in a monopolistic competition operates in a market structure where many companies sell products that are similar but not identical, allowing for some degree of market power.

Cartel Production Quota

The allocated amount of production assigned to each member of a cartel, aiming to control supply and influence market prices.