Susan owns a restaurant that sells hamburgers in a monopolistically competitive market. The graph to the right depicts the demand and marginal revenue for her hamburgers. Suppose that Susan's restaurant is maximizing profits at 35 hamburgers (per day). Assume that the monopolistically competitive industry is at a long-run equilibrium. Use the three-point curve drawing tool to add Susan's long run average cost (ATC) curve to the graph. Properly label this curve. Carefully follow the instructions above, and only draw the required objects. Price and cost (dollars per hambu 2.00 2.25- 2.00- 1.75 1.50 1.25- 1.00 0.75- 0.50 0.25 ATC MR D 0 60 70 80 90 100 10 20 30 40 50 Quantity of hamburgers (per day) O
Susan owns a restaurant that sells hamburgers in a monopolistically competitive market. The graph to the right depicts the demand and marginal revenue for her hamburgers. Suppose that Susan's restaurant is maximizing profits at 35 hamburgers (per day). Assume that the monopolistically competitive industry is at a long-run equilibrium. Use the three-point curve drawing tool to add Susan's long run average cost (ATC) curve to the graph. Properly label this curve. Carefully follow the instructions above, and only draw the required objects. Price and cost (dollars per hambu 2.00 2.25- 2.00- 1.75 1.50 1.25- 1.00 0.75- 0.50 0.25 ATC MR D 0 60 70 80 90 100 10 20 30 40 50 Quantity of hamburgers (per day) O
Chapter14: Monopolistic Competition And Product Differentiation
Section: Chapter Questions
Problem 5P
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