Use Figure 17.6, which shows the demand curve, marginal revenue curve, and cost curves of La Bella Pizza, a firm in monopolistic competition, to work Problems.

What is the quantity that La Bella Pizza produces, the price it charges, its markup, and its excess capacity? Is the market in short-run or long-run equilibrium? Explain your answer.

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FIGURE 17.6 Chapter Checkpoint Assignable Problems 3, 4 Price and cost (dollars per pizza) 18 16 14 12 10 0 50 100 MR MC ATC D 150 200 250 Quantity (pizzas per day)