The figure below shows a monopolistically competitive market for a fictional brand of shampoo called Squeakykleen.Price ($)3.5Tools3.0MCDWL2.52.0ATC1.51.00.5MR10 20 30 40 50 60 70 80 90100110120Bottles of shampoo (millions) Instructions: Round price values to two decimal places and quantity values to the nearest whole number.a. In the short run, the price of Squeakykleen is $| and the quantity isb. The efficient price of SqueakyKleen is $and the efficient quantity isc. What is the deadweight loss?Instructions: Use the tool provided (DWL) tool to draw the deadweight loss.

In a monopolistic competitive market, profit is maximised at a point where marginal revenue is equal…

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ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Transcribed Image Text:The figure below shows a monopolistically competitive market for a fictional brand of shampoo called Squeakykleen. Price ($) 3.5 Tools 3.0 MC DWL 2.5 2.0 ATC 1.5 1.0 0.5 MR 10 20 30 40 50 60 70 80 90100110120 Bottles of shampoo (millions)

Instructions: Round price values to two decimal places and quantity values to the nearest whole number.
a. In the short run, the price of Squeakykleen is $
| and the quantity is
b. The efficient price of SqueakyKleen is $
and the efficient quantity is
c. What is the deadweight loss?
Instructions: Use the tool provided (DWL) tool to draw the deadweight loss.

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