Monopolistic competitor in long-run equilibrium

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Reference no: EM13894136

Suppose a monopolistic competitor in long-run equilibrium has a constant marginal cost of $6 and faces the demand curve given in the following table:

Q 20 18 16 14 12 10 8 6

P $2 $4 $6 $8 $10 $12 $14 $16

a. what output will the firm choose?

b. what will be the monopolistic competitors average total cost at the chosen output?

c. What will be the monopolistic competitor’s total profit at the chosen output?

d. Is the firm allocatively efficient?

Reference no: EM13894136

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