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A small, local restaurant in St. Augustine, FL, serves scrambled eggs for breakfast. The market for breakfast scrambled eggs is monopolistically competitive. The following graph shows the demand, MR, MC, and ATC curve of this local restaurant. Use the graph to answer questions 3 to 7. Price (P) per plate $10 7 5 3 2 0 50 MC MR 80 100 ATC D Number of plates of scrambled eggs served per day (Q)

A small, local restaurant in St. Augustine, FL, serves scrambled eggs for breakfast. The market for breakfast scrambled eggs is monopolistically competitive. The following graph shows the demand, MR, MC, and ATC curve of this local restaurant. Use the graph to answer questions 3 to 7. Price (P) per plate $10 7 5 3 2 0 50 MC MR 80 100 ATC D Number of plates of scrambled eggs served per day (Q)

Economics Today and Tomorrow, Student Edition
Economics Today and Tomorrow, Student Edition
1st Edition
ISBN:9780078747663
Author:McGraw-Hill
Publisher:McGraw-Hill
Chapter3: Your Role As A Consumer
Section: Chapter Questions
Problem 5AA
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7) Does the economic outcome of this restaurant lead to productive efficiency, and why or why not? Yes, it achieves productive efficiency because the marginal benefit is equal to the marginal cost. Yes, it achieves productive efficiency because the price is equal to the minimum of the average total cost of production. No, it does not achieve productive efficiency because the price is not equal to the minimum of the average total cost of production. No, it does not achieve productive efficiency because the marginal benefit is not equal to the marginal cost. O
Transcribed Image Text:7) Does the economic outcome of this restaurant lead to productive efficiency, and why or why not? Yes, it achieves productive efficiency because the marginal benefit is equal to the marginal cost. Yes, it achieves productive efficiency because the price is equal to the minimum of the average total cost of production. No, it does not achieve productive efficiency because the price is not equal to the minimum of the average total cost of production. No, it does not achieve productive efficiency because the marginal benefit is not equal to the marginal cost. O
A small, local restaurant in St. Augustine, FL, serves scrambled eggs for breakfast. The market for breakfast scrambled eggs is monopolistically competitive. The following graph shows the demand, MR, MC, and ATC curve of this local restaurant. Use the graph to answer questions 3 to 7. Price (P) per plate $10 7 5 3 2 0 MC MR 50 80 100 ATC Number of plates of scrambled eggs served per day (Q)
Transcribed Image Text:A small, local restaurant in St. Augustine, FL, serves scrambled eggs for breakfast. The market for breakfast scrambled eggs is monopolistically competitive. The following graph shows the demand, MR, MC, and ATC curve of this local restaurant. Use the graph to answer questions 3 to 7. Price (P) per plate $10 7 5 3 2 0 MC MR 50 80 100 ATC Number of plates of scrambled eggs served per day (Q)
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