In your city, there are currently three firms providing oil changes. For each firm, there is a
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Question:
In your city, there are currently three firms providing oil changes. For each firm, there is a fixed cost of $100 per day and a marginal cost of $14 per oil change. Each firm currently maximizes its profit by providing 20 oil changes per day.
a. For each firm, marginal revenue equals $__________________. (Enter your response rounded to the nearest dollar.)
b. This is a long-run. monopolistically competitive equilibrium if (1) ________________equals $ _________________. (Enter your response rounded to the nearest penny.)
(1)
- marginal revenue
- price
- marginal cost
Related Book For
Operations and Supply Chain Management
ISBN: 978-0078024023
14th edition
Authors: F. Robert Jacobs, Richard Chase
Posted Date: