Answer the following questions for this monopolistically competitive firm and show your calculations when necessary.
What is the profit maximizing price, Output?
For this monopolistic competitive firm, is the firm earning a profit or loss? Explain.
What is the average total cost (ATC)?
What is the amount of average revenue (AR)?
What is the amount of total revenue, Total costs?
In comparison to a monopolist, is the elasticity of the demand curve more or less elastic than a monopolistic competitive firm? Explain your answer.
Can this monopolistic competitive firm earn a profit in the long-run? Explain your reasonings with detail so I can apply the material.