2. Understanding excess capacity The following table shows the daily cast data and demand schedule for a typical firm producing board games in a manopolistically 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) Marginal Revenue Average Total Cost (Dollars) (Dollars) Quantity (Board games) 1 2 3 4 " 6 7 Price (Dollars per game) 12.00 18.00 9.00 0.00 6.00 4.00 2.00 1.00 13 Based on your calculations, the firm will 20 30 30 40 60 72 Marginal Cost (Dollars) AAAAAAA Undar monopolistic compatition, a typical firm will produce 15 KAHAM No in 20 12 21 12 20 27 32 30 24 14 board games at a price of S Fill in the Average Total Cost column in the previous table Based on your calculations, the level of excess capacity in this manopolistically competitive market is 6 -10 13 14 10 0 0 10 10 12 par board game in the short run.

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