Arrange the following steps in the process of a firm maximizing profits in a monopolistically competitive market: A) Determine the price at which marginal cost equals marginal revenue B) Analyze the demand curve to understand pricing power C) Calculate average total cost to assess profitability D) Adjust output to maximize the difference between total revenue and total cost

To maximize profits in a monopolistically competitive market, a firm first needs to analyze the demand curve to understand its pricing power. This helps the firm see how much it can charge for its product and how many units it can sell at different prices. Next, the firm determines the price at which marginal cost equals marginal revenue, as this is where it maximizes profit from each additional unit sold. After establishing this price, the firm calculates average total cost to assess profitability and ensure that it is making a profit at that output level. Finally, the firm adjusts its output to maximize the difference between total revenue and total cost, ensuring it is producing the most profitable quantity of goods.