Suppose a monopolistic competitor and long-run equilibrium


Suppose a monopolistic competitor and long-run equilibrium has a constant marginal cost of six dollars and faces the demand curve given in the following table:

Price Quantity

14 2

12 4

10 6

8 8

6 10

4 12

2 14

0 16

A. What output will the firm choose?

B. What will the monopolistic competitor's average fixed cost at the output it chooses?

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Business Economics: Suppose a monopolistic competitor and long-run equilibrium
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