Understanding excess capacityThe following table shows the daily cost data and demand schedule for a typical firm producing board games in a monopolistically competitive market in the short run.Fill in the values in the Marginal Cost, Total Revenue, and Marginal Revenue columns in the following table and then answer the questions that follow.QuantityPriceTotal CostMarginal CostTotal RevenueMarginal RevenueAverage Total Cost(Board games)(Dollars per game)(Dollars)(Dollars)(Dollars)(Dollars)(Dollars)110.0017 29.0020 38.0027 46.0032 54.0035 63.0048 72.0056 81.0064 Under monopolistic competition, a typical firm will produce _____ board games at a price of $_____ per board game in the short run. Based on your calculations, the firm will ________a. earn a profit of $2b. break evenc. suffer an economic loss of $2d. suffer and economic loss of $18 Fill in the Average Total Cost column in the previous table.Based on your calculations, the level of excess capacity in this monopolistically competitive market is ______ . How many board games a. 1b. 2c. 5d. 3e. 4

Quantity Price Total Cost Marginal Cost Total Revenue Marginal Revenue Average Total…

Answered: The following table shows the daily…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Understanding excess capacity

The following table shows the daily cost data and demand schedule for a typical firm producing board games in a monopolistically competitive market in the short run.

Fill in the values in the Marginal Cost, Total Revenue, and Marginal Revenue columns in the following table and then answer the questions that follow.

Quantity	Price	Total Cost	Marginal Cost	Total Revenue	Marginal Revenue	Average Total Cost
(Board games)	(Dollars per game)	(Dollars)	(Dollars)	(Dollars)	(Dollars)	(Dollars)
1	10.00	17

2	9.00	20

3	8.00	27

4	6.00	32

5	4.00	35

6	3.00	48

7	2.00	56

8	1.00	64

Under monopolistic competition, a typical firm will produce _____ board games at a price of $_____ per board game in the short run.

Based on your calculations, the firm will ________

a. earn a profit of $2

b. break even

c. suffer an economic loss of $2

d. suffer and economic loss of $18

Fill in the Average Total Cost column in the previous table.

Based on your calculations, the level of excess capacity in this monopolistically competitive market is ______ .

How many board games

a. 1

b. 2

c. 5

d. 3

e. 4

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