Suppose that a monopolistically competitive restaurant is currently serving 230 meals per day (the output where MR = MC). At that output level, ATC per meal is $10 and consumers are willing to pay $12 per meal. Instructions: Enter your answers as a whole number. a. What is this firm's profit or loss? $4 b. Will there be entry or exit? (Click to select) Will this restaurant's demand curve shift left or right? (Click to select) - In long-run equilibrium, suppose that this restaurant charges $11 per meal for 180 meals and that the marginal cost of the 180th meal is $8. Suppose that the allocatively efficient output level in long-run equilibrium is 200 meals. c. What is the size of the firm's economic profit? $. d. Is the deadweight loss for this firm greater than or less than $60? (Click to select) ▼
Suppose that a monopolistically competitive restaurant is currently serving 230 meals per day (the output where MR = MC). At that output level, ATC per meal is $10 and consumers are willing to pay $12 per meal. Instructions: Enter your answers as a whole number. a. What is this firm's profit or loss? $4 b. Will there be entry or exit? (Click to select) Will this restaurant's demand curve shift left or right? (Click to select) - In long-run equilibrium, suppose that this restaurant charges $11 per meal for 180 meals and that the marginal cost of the 180th meal is $8. Suppose that the allocatively efficient output level in long-run equilibrium is 200 meals. c. What is the size of the firm's economic profit? $. d. Is the deadweight loss for this firm greater than or less than $60? (Click to select) ▼
Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter16: Monopolistic Competition
Section: Chapter Questions
Problem 5PA
Related questions
Question
Question 11
![Suppose that a monopolistically competitive restaurant is currently serving 230 meals per day (the output where MR = MC). At that
output level, ATC per meal is $10 and consumers are willing to pay $12 per meal.
Instructions: Enter your answers as a whole number.
a. What is this firm's profit or loss?
$4
b. Will there be entry or exit?
(Click to select)
Will this restaurant's demand curve shift left or right?
(Click to select) -
In long-run equilibrium, suppose that this restaurant charges $11 per meal for 180 meals and that the marginal cost of the 180th meal is
$8. Suppose that the allocatively efficient output level in long-run equilibrium is 200 meals.
c. What is the size of the firm's economic profit?
$4
d. Is the deadweight loss for this firm greater than or less than $60?
(Click to select) ▼](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F950ccb0b-88f0-424e-a789-46ed3bd2a086%2F75dbb9cd-801a-439d-8fc7-9301a37dcf7a%2Fd6k05kh_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Suppose that a monopolistically competitive restaurant is currently serving 230 meals per day (the output where MR = MC). At that
output level, ATC per meal is $10 and consumers are willing to pay $12 per meal.
Instructions: Enter your answers as a whole number.
a. What is this firm's profit or loss?
$4
b. Will there be entry or exit?
(Click to select)
Will this restaurant's demand curve shift left or right?
(Click to select) -
In long-run equilibrium, suppose that this restaurant charges $11 per meal for 180 meals and that the marginal cost of the 180th meal is
$8. Suppose that the allocatively efficient output level in long-run equilibrium is 200 meals.
c. What is the size of the firm's economic profit?
$4
d. Is the deadweight loss for this firm greater than or less than $60?
(Click to select) ▼
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
![Principles of Microeconomics](https://www.bartleby.com/isbn_cover_images/9781305156050/9781305156050_smallCoverImage.gif)
Principles of Microeconomics
Economics
ISBN:
9781305156050
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
![Principles of Economics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781305585126/9781305585126_smallCoverImage.gif)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
![Principles of Microeconomics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781305971493/9781305971493_smallCoverImage.gif)
Principles of Microeconomics (MindTap Course List)
Economics
ISBN:
9781305971493
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
![Principles of Microeconomics](https://www.bartleby.com/isbn_cover_images/9781305156050/9781305156050_smallCoverImage.gif)
Principles of Microeconomics
Economics
ISBN:
9781305156050
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
![Principles of Economics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781305585126/9781305585126_smallCoverImage.gif)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
![Principles of Microeconomics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781305971493/9781305971493_smallCoverImage.gif)
Principles of Microeconomics (MindTap Course List)
Economics
ISBN:
9781305971493
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
![Principles of Economics, 7th Edition (MindTap Cou…](https://www.bartleby.com/isbn_cover_images/9781285165875/9781285165875_smallCoverImage.gif)
Principles of Economics, 7th Edition (MindTap Cou…
Economics
ISBN:
9781285165875
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
![ECON MICRO](https://www.bartleby.com/isbn_cover_images/9781337000536/9781337000536_smallCoverImage.gif)