Answer:
The correct answer is: be set where the quantity produced falls on the average revenue (AR) curve.
Explanation:
Monopolistic Competition exists in industries that have many firms offering similar products or services. For example restaurants, supermarkets, and clothing stores. Those products and services are not perfect substitutes from one another.
In the long run, a monopolistic competitive company can maximize its profits by producing goods at the point where marginal revenues are the same as marginal costs. The price charged by these firms will have to be set where the average revenue (AR) curve falls.
