Maximizing Profits in a monopolistically competitive model

I'm confused on a concept and I have a test coming up, so I need a bit of help on a discussion I had in class today about profit maximization I don't fully understand... Given a situation (discussed in class today) in a monopolistically competitive market (NOT a monopoly), if my price is $10 for an item and at my present rate of output, my marginal cost is $8 per unit (and rising)... Do I need to change my price to maximize my profits? With a rising marginal cost, I don't think my profits are maximized, but I'm not sure how to tell for sure, and I'm trying to figure out in a monopolistically competitive model whether I should drop the price to lure more customers (to increase profits),... click for more

Economics- Conceptual exercise in maximizing profits in a Monopolistic competition model

I think I'm understanding this better, but I still need some help. I had another BrainMass TA (101733) who was very helpful with concepts (thank you), but I want to cross-reference the response I received with another independent viewpoint... Here is a discussion point that was put to the class, and I'll transcribe it verbatim: "You are the manager of a firm operating in a monopolistic competition market situation. Currently, your price is $10. At the present rate of output your marginal cost is $8 per unit and rising. Are you currently maximizing your total profits? If you are trying to maximize profits, should you change your price? If so, what should you do- raise or lower the... click for more

microecon

See attachment for full questions. Questions include: (a) What is a production function? (b) How does a short-run production function differ from a long-run production function? (c) Explain the term "Marginal Rate of technical Substitution". (d) Why are isoquants assumed to be downward sloping?

How to choose optimal combinations of factors of production?

How does a firm choose the optimal combination of fctors of production when it wants to minimise costs for a given output, and when it wants to maximise output for given cost?

Need help with these problems

OK HERE ARE THE CORRECTIONS. IN PROBLEM 2 THE ANSWER TO #1 IS $2 PER GALLON OF GAS. HE SAID USING THIS YOU COULD SOLVE THE REST OF THE PROBLEMS. I HOPE!!! PLEASE SEE ATTCHMENT