Consider the following graph:

a. Is it possible to say whether this firm is a perfectly competitive firm or a monopolistically competitive firm? If so, explain how you are able to make this determination.
b. Does the graph show a short-run equilibrium or a long-run equilibrium? Briefly explain.
c. What quantity on the graph represents long-run equilibrium if the firm is perfectly competitive?

Transcribed Image Text:

Price | (dollars per burrito) $10.00 MC ATC Demand 4 5 6 7 8 9 10 Quantity (burritos per week) 0 1 2 MR