The graph shows the demand, marginal revenue, marginal cost, and average total cost curves of La Bella Pizza, a firm in monopolistic competition. Draw a point at the firm's profit-maximizing price and quantity. Label it 1. Draw a point at minimum average total cost. Label it 2. Draw a horizontal arrow that shows the firm's excess capacity. Draw a shape to show deadweight loss. Label it DWL. The firm's excess capacity is pizzas a day. In the long run, the number of pizza producers A. decreases B. does not change OC. increases Selected: none I ( 16.00 14.00- 12.00- 10.00- 8.00 6.00+ 0 Price (dollars per pizza) 50 100 150 200 Quantity (pizzas per day) >>> Draw only the objects specified in the question. Delete Clear ? Next 250 MC X A1 MI D Canv. suppo d? ES

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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The graph shows the demand, marginal revenue, marginal
cost, and average total cost curves of La Bella Pizza, a firm
in monopolistic competition.
Draw a point at the firm's profit-maximizing price and
quantity. Label it 1.
Draw a point at minimum average total cost. Label it 2.
Draw a horizontal arrow that shows the firm's excess
capacity.
Draw a shape to show deadweight loss. Label it DWL.
The firm's excess capacity is pizzas a day.
In the long run, the number of pizza producers
OA. decreases
OB. does not change
OC. increases
I
Selected:
none
Oll
&
7
O
►
8
16.00-
14.00-
12.00-
10.00-
8.00-
6.00-
0
9
Price (dollars per pizza)
50
100 150 200
Quantity (pizzas per day)
>>> Draw only the objects specified in the
question.
Delete Clear
Next
DE
250
MI
x
MC
A1
D
Canva
suppor
d?
ES
Transcribed Image Text:The graph shows the demand, marginal revenue, marginal cost, and average total cost curves of La Bella Pizza, a firm in monopolistic competition. Draw a point at the firm's profit-maximizing price and quantity. Label it 1. Draw a point at minimum average total cost. Label it 2. Draw a horizontal arrow that shows the firm's excess capacity. Draw a shape to show deadweight loss. Label it DWL. The firm's excess capacity is pizzas a day. In the long run, the number of pizza producers OA. decreases OB. does not change OC. increases I Selected: none Oll & 7 O ► 8 16.00- 14.00- 12.00- 10.00- 8.00- 6.00- 0 9 Price (dollars per pizza) 50 100 150 200 Quantity (pizzas per day) >>> Draw only the objects specified in the question. Delete Clear Next DE 250 MI x MC A1 D Canva suppor d? ES
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