Note:-Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.Answer completely.You will get up vote for sure. 4. Is monopolistic competition efficient?Suppose that a company operates in the monopolistically competitive market for rugby kits. The following graph shows the demand curve, marginalrevenue (MR) curve, marginal cost (MC) curve, and average total cost (ATC) curve for the firm.Place a black point (plus symbol) on the graph to indicate the long-run monopolistically competitive equilibrium price and quantity for this firm. Next,place a grey point (star symbol) to indicate the minimum average total cost the firm faces and the quantity associated with that cost.ⒸPRICE (Dollars per kit)1009080706050403020100MC010MRATC20 30 40Demand50 60 70 80QUANTITY (Thousands of kits)90 100Mon Comp OutcomeMin Unit CostBecause this market is monopolistically competitive, you can tell that it is in long-run equilibrium by the fact thateach firm. Further, a monopolistically competitive firm's average total cost in long-run equilibrium iscost.at the optimal quantity forthe minimum average total

A monopolistic competitive firm produces at the intersection of MR and MC curves. Hence,…

Suppose that a company operates in the monopolistically competitive market for rugby kits. The following graph shows the demand curve, marginal revenue (MR) curve, marginal cost (MC) curve, and average total cost (ATC) curve for the firm.

Suppose that a company operates in the monopolistically competitive market for rugby kits. The following graph shows the demand curve, marginal revenue (MR) curve, marginal cost (MC) curve, and average total cost (ATC) curve for the firm.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

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Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.
Answer completely.
You will get up vote for sure.

4. Is monopolistic competition efficient?
Suppose that a company operates in the monopolistically competitive market for rugby kits. The following graph shows the demand curve, marginal
revenue (MR) curve, marginal cost (MC) curve, and average total cost (ATC) curve for the firm.
Place a black point (plus symbol) on the graph to indicate the long-run monopolistically competitive equilibrium price and quantity for this firm. Next,
place a grey point (star symbol) to indicate the minimum average total cost the firm faces and the quantity associated with that cost.
Ⓒ
PRICE (Dollars per kit)
100
90
80
70
60
50
40
30
20
10
0
MC
0
10
MR
ATC
20 30 40
Demand
50 60 70 80
QUANTITY (Thousands of kits)
90 100
Mon Comp Outcome
Min Unit Cost
Because this market is monopolistically competitive, you can tell that it is in long-run equilibrium by the fact that
each firm. Further, a monopolistically competitive firm's average total cost in long-run equilibrium is
cost.
at the optimal quantity for
the minimum average total

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