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 (Board games) Total Cost Price (Dollars) (Dollars per game) Marginal Cost (Dollars) Total Revenue (Dollars) Average Total Cost (Dollars) 1 2 3 4 15.00 13.00 12.00 10.00 11 20 27 36 AAAA Marginal Revenue (Dollars) AAAA

Principles of Economics (MindTap Course List)
8th Edition
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter16: Monopolistic Competition
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2. 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.
Total Cost
(Dollars)
Total Revenue
(Dollars)
Quantity
(Board games)
1
2
3
4
5600
7
8
Price
(Dollars per game)
15.00
13.00
12.00
10.00
7.00
5.00
3.00
1.00
Based on your calculations, the firm will
11
20
27
36
45
60
70
104
Under monopolistic competition, a typical firm will produce
Fill in the Average Total Cost column in the previous table.
Marginal Cost
(Dollars)
AAAAAAA
board games at a price of $
Marginal Revenue
(Dollars)
AAAAAAA
Based on your calculations, the level of excess capacity in this monopolistically competitive market is
Average Total Cost
(Dollars)
per board game in the short run.
Transcribed Image Text:2. 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. Total Cost (Dollars) Total Revenue (Dollars) Quantity (Board games) 1 2 3 4 5600 7 8 Price (Dollars per game) 15.00 13.00 12.00 10.00 7.00 5.00 3.00 1.00 Based on your calculations, the firm will 11 20 27 36 45 60 70 104 Under monopolistic competition, a typical firm will produce Fill in the Average Total Cost column in the previous table. Marginal Cost (Dollars) AAAAAAA board games at a price of $ Marginal Revenue (Dollars) AAAAAAA Based on your calculations, the level of excess capacity in this monopolistically competitive market is Average Total Cost (Dollars) per board game in the short run.
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