how-does-a-firm-in-monopolistic-competition-determine-the-markup-over-marginal-c

Question

How does a firm in monopolistic competition determine the markup over marginal cost?

Accepted Answer

By calculating the difference between price on the demand curve and marginal cost.

Answer

By calculating the difference between marginal revenue and marginal cost.

Answer

By calculating the difference between average total cost and marginal cost.

Answer

By calculating the difference between price and average total cost.