The figure is drawn for a monopolistically-competitive firm. t Price MC 140 ATC 123.33 Demand 90 56.67 MR 100 133.33 Quantity Refer to Figure 16-9. Efficient scale is reached Oa. at 100 units. Ob. between 100 and 133.33 units. OC. at 133.33 units. Od. beyond 133.33 units.

The figure is drawn for a monopolistically-competitive firm. t Price MC 140 ATC 123.33 Demand 90 56.67 MR 100 133.33 Quantity Refer to Figure 16-9. Efficient scale is reached Oa. at 100 units. Ob. between 100 and 133.33 units. OC. at 133.33 units. Od. beyond 133.33 units.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter10: Monopolistic Competition And Oligopoly

Section: Chapter Questions

Problem 15CTQ: Make a case for why monopolistically competitive industries never reach long-run equilibrium.

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Question

Figure 16-9
The figure is drawn for a monopolistically-competitive firm.
↑Price
MC
140
ATC
123.33
Demand.
90
56.67
MR.
100
133.33
Quantity
Refer to Figure 16-9. Efficient scale is reached
Oa. at 100 units.
Ob. between 100 and 133.33 units.
OC. at 133.33 units.
Od. beyond 133.33 units.

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