A photocopy shop in a monopolistically competitive market could daily sell 2,000 copies at a price of 7 cents, or it could sell 7,000 copies at a price of 5 cents. 

a. The marginal revenue associated with this range of the business's demand curve is ________ cent(s). 

b. Because this business is a monopolistic competitor, marginal revenue is _________ less than price. 

c. Draw the relevant range of this business's demand curve and identify a point on its marginal revenue curve.

 

Transcribed Image Text:

Cents per Copy 7.5 7.0 6.5 6.0 5.5 5.0 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 N 0 Demand and Marginal Revenue for a Photocopy Shop 5000 10000 15000 Quantity (Copies per Day) 20000 Cents per Copy 7.5 7.0 6.5 6.0 5.5 5.0 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 N 0 Demand and Marginal Revenue for a Photocopy Shop 5000 10000 15000 Quantity (Copies per Day) 20000

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a Marginal revenue is the difference between total revenue TR1 20007 14000 TR2 ... View the full answer