firm in monopolistic competition produces an output level Q1 = 100 where marginal revenue is equal to marginal cost. At this output level, the price is P1 = $75 and the average total cost is ATC1 = $25. Draw the graph for the monopolistically competitive firm in the short-run equilibrium using the numbers provided above (include ATC, D, MC, and MR curves). Label everything! On the graph, show the markup and the excess capacity for this firm. Draw the graph for the monopolistically competitive firm in long-run equilibrium
firm in monopolistic competition produces an output level Q1 = 100 where marginal revenue is equal to marginal cost. At this output level, the price is P1 = $75 and the average total cost is ATC1 = $25. Draw the graph for the monopolistically competitive firm in the short-run equilibrium using the numbers provided above (include ATC, D, MC, and MR curves). Label everything! On the graph, show the markup and the excess capacity for this firm. Draw the graph for the monopolistically competitive firm in long-run equilibrium
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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A firm in
- Draw the graph for the monopolistically competitive firm in the short-run equilibrium using the numbers provided above (include ATC, D, MC, and MR
curves ). Label everything! - On the graph, show the markup and the excess capacity for this firm.
- Draw the graph for the monopolistically competitive firm in long-run equilibrium
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