Use Figure 17.1, which shows the demand curve, marginal revenue curve, and cost curves of Lite and Kool, Inc., a producer of running shoes in monopolistic competition, to work Problems 3 to 5.

In the short run, what quantity does Lite and Kool produce, what price does it charge, and does it make an economic profit?

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FIGURE 17.1 Chapter Checkpoint Study Plan Problems 3 to 5 Price and cost (dollars per pair) 125 100 75 50 25 0 100 200 MC ATC MR D 300 400 Quantity (pairs per week)