A monopolistically competitively firm faces the following demand and cost structure in the short-run.

a. Complete the table
b. What is the highest profit or lowest profit available to this firm?
c. Should this firm operate or shut down in the short run? Why?
d. What is the relationship between marginal revenue and marginal cost as the firm increasesoutput?

Transcribed Image Text:

Output P FCVCTCTR Profit loss rice S100 $90 $80 S70 $60 S50 S40 $30 S0 50 90 150 230 230 450 590 S100