Getting conflicting information, which one is it?
They produce at a level where MC = MR; their selling price satisfies P = D.
From what I know, monopolistic competiton is a price searcher, so it faces a higly elastic demand. It produces where MC = MR. Hopefully someone could answer in more detail.
They produce quantity at MC = MR.
At this quantity they go to Demand curve and find the price that they could charge…
The the demand curve they face would vary based on their product quality and advertisement they have done…
That’s my understanding.