Economics 102 help please?

Posted on 2014-11-20 06:20:00 in Economics by TELLY

Suppose that a monopolistically competitive restaurant is currently serving 230 meals per day (the output where MR = MC). At that output level, ATC per meal is $10 and consumers are willing to pay $12 per meal.

Instructions: 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 200 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 $8.

What is the size of the firm's profit? $______

d. Suppose that the allocatively efficient output level in long-run equilibrium is 200 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 $8.

Is the deadweight loss for this firm greater than or less than $60? ____

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