Assume that in short-run equilibrium, a particular monopolistically competitive firm charges $12 for each unit of its output and sells 52 units of output per day. The average total cost (ATC) for those 52 units is $10. Instruction: Round your answers below to the nearest whole number. How much revenue will the firm take in each day? $ What will be the firm's economic profit or loss? of $ Next, suppose that entry or exit occurs in this monopolistically competitive industry and establishes a long-run equilibrium. If the firm’s daily output remains at 52 units, what price will it be able to charge? $ What will be its economic profit or loss? of $

Assume that in short-run equilibrium, a particular monopolistically competitive firm charges $12 for each unit of its output and sells 52 units of output per day. The average total cost (ATC) for those 52 units is $10. Instruction: Round your answers below to the nearest whole number. How much revenue will the firm take in each day? $ What will be the firm's economic profit or loss? of $ Next, suppose that entry or exit occurs in this monopolistically competitive industry and establishes a long-run equilibrium. If the firm’s daily output remains at 52 units, what price will it be able to charge? $ What will be its economic profit or loss? of $

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter10: Monopolistic Competition And Oligopoly

Section: Chapter Questions

Problem 4QFR

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