Fill This Form To Receive Instant Help

Help in Homework
trustpilot ratings
google ratings


Homework answers / question archive / Suppose that a monopolistically competitive restaurant is currently serving 260 meals per day (the output where MR = MC)

Suppose that a monopolistically competitive restaurant is currently serving 260 meals per day (the output where MR = MC)

Economics

Suppose that a monopolistically competitive restaurant is currently serving 260 meals per day (the output where MR = MC). At that output level, ATC per meal is $10 and consumers are willing to pay $13 per meal. Enter your answers as whole numbers.

a. What is the size of this firm's profit or loss? $

b. Will there be entry or exit?. Will this restaurant's demand curve shift left or right?

c. Assume that the allocatively efficient output level in long-run equilibrium is 210 meals. In long-run equilibrium, suppose that this restaurant charges $11 per meal for 180 meals and that the marginal cost of the 180th meal is $9. What is the size of the firm's profit? $

d. Suppose that the allocatively efficient output level in long-run equilibrium is 210 meals. In long-run equilibrium, suppose that this restaurant charges $11 per meal for 180 meals and that the marginal cost of the 180th meal is $9. Is the deadweight loss for this firm greater than or less than $60? 

Option 1

Low Cost Option
Download this past answer in few clicks

3.87 USD

PURCHASE SOLUTION

Already member?


Option 2

Custom new solution created by our subject matter experts

GET A QUOTE