Suppose a monopolistic competitor in long-run equilibrium has a constant marginal cost of $2 and faces the demand curve given in the following table:
a. What output will the firm choose?
Instructions: Enter your answer as a whole number.
Output is  unit(s).
b. What will be the monopolistic competitor
Solution
H ello Pal,
F irst of all a very nice as well as intersting question from your side.
S o now straight to the question, as asked above with all the information available from your side and from mine, the answer is as under:
Q.1 A fter calculation of the above given information, we can conclude that the answer or the output will be 6 units.
Q.2 A verage fixed cost is $ 1.5.
T hat is all I can say from the above given information by you, hope have solved your problem to some extent.
R egards.
.
Suppose a monopolistic competitor in long-run equilibrium has a consta.docx
1. Suppose a monopolistic competitor in long-run equilibrium has a constant marginal cost of $2
and faces the demand curve given in the following table:
a. What output will the firm choose?
Instructions: Enter your answer as a whole number.
Output is  unit(s).
b. What will be the monopolistic competitor
Price ($) Quantity
8 0
7 1
6 2
5 3
4 4
3 5
2 6
1 7
Solution
H ello Pal,
F irst of all a very nice as well as intersting question from your side.
S o now straight to the question, as asked above with all the information available from your side
and from mine, the answer is as under:
Q.1 A fter calculation of the above given information, we can conclude that the answer or the
output will be 6 units.
2. Q.2 A verage fixed cost is $ 1.5.
T hat is all I can say from the above given information by you, hope have solved your problem to
some extent.
R egards.
