In the context of monopolistic competition, which of the following sequences correctly illustrates the process of determining the profit-maximizing output and price for a firm?

In monopolistic competition, a firm maximizes its profit by finding the output level where its marginal cost equals its marginal revenue. This means the firm will produce more as long as the revenue from selling one more unit is greater than the cost of producing that unit. After determining the optimal output level, the firm will look at the demand curve to find the price consumers are willing to pay for that quantity. For example, if a restaurant finds that serving 100 meals maximizes its profit, it will check the price at which 100 meals can be sold based on consumer demand. This process ensures that the firm operates efficiently while also considering how much consumers are willing to pay.