Assume that in short-run equilibrium, a particular monopolistically competitive firm charges $12 for each unit of its output and sells 62 units of output per day. The average total cost (ATC) for those 62 units is $18. Instruction: Round your answers below to the nearest whole number. How much revenue will it take in each day? $ What will be its economic profit or loss? Loss v of $ Next, suppose that entry or exit occurs in this monopolistically competitive industry and establishes a long-run equilibrium. If the firm's daily output remains at 62 units, what price will it be able to charge? $ What will be its economic profit or loss? Neither profit nor loss v of $
Assume that in short-run equilibrium, a particular monopolistically competitive firm charges $12 for each unit of its output and sells 62 units of output per day. The average total cost (ATC) for those 62 units is $18. Instruction: Round your answers below to the nearest whole number. How much revenue will it take in each day? $ What will be its economic profit or loss? Loss v of $ Next, suppose that entry or exit occurs in this monopolistically competitive industry and establishes a long-run equilibrium. If the firm's daily output remains at 62 units, what price will it be able to charge? $ What will be its economic profit or loss? Neither profit nor loss v of $
Chapter10: Monopolistic Competition And Oligopoly
Section: Chapter Questions
Problem 1.1P
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