2. Understanding excess capacity The following table shows the daily cost data and demand schedule for a typical firm producing board games in a monopolistically 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. Quantity Price Total Cost Marginal Cost (Board games) (Dollars per game) (Dollars) (Dollars) 123456 15.00 15 12.00 20 10.00 27 8.00 32 6.00 35 6 7 8 4.00 42 3.00 48 1.00 56 Total Revenue (Dollars) Marginal Revenue (Dollars) Average Total Cost (Dollars) Under monopolistic competition, a typical firm will produce board games at a price of $ per board game in the short run. Based on your calculations, the firm will Fill in the Average Total Cost column in the previous table. Based on your calculations, the level of excess capacity in this monopolistically competitive market is
2. Understanding excess capacity The following table shows the daily cost data and demand schedule for a typical firm producing board games in a monopolistically 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. Quantity Price Total Cost Marginal Cost (Board games) (Dollars per game) (Dollars) (Dollars) 123456 15.00 15 12.00 20 10.00 27 8.00 32 6.00 35 6 7 8 4.00 42 3.00 48 1.00 56 Total Revenue (Dollars) Marginal Revenue (Dollars) Average Total Cost (Dollars) Under monopolistic competition, a typical firm will produce board games at a price of $ per board game in the short run. Based on your calculations, the firm will Fill in the Average Total Cost column in the previous table. Based on your calculations, the level of excess capacity in this monopolistically competitive market is
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter14: Monopoly
Section: Chapter Questions
Problem 1PA
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