(Quantity) Variable Total Average Average Marginal Total Marginal Pizzas Cost Cost Total Variable Cost Revenue revenue Cost Cost 10 140 8 48 10 48 8 12 17 57 28.5 8.5 20 13 27 57 22.33 30 4 38 78 40 19.5 9.5 50 90 50 18 16 164 104 17.33 10.66667 60 80 120 17.14 11.42857 70 a . Complete the above table. (Assume that it is a perfect competition and the price of Pizzas is $10) What is the fixed cost faced by the firm? ($40) If the firm operates under the perfect competition and the market price is 10, what is the profit maximization output for the firm (MR = MC = 2) d What type of market is this firm? Give reasons for your answer. Perfect competition (MR = P = AR - 100 = 100 =100). 4. a Compare any two characteristics between monopoly and monopolistic competition. Comparing Monopoly & Monop. Competition Monopoly Monopolistic competition number of sellers one many free entry/exit no yes long-run econ. profits positive zero firm has market power? yes downward- D curve facing firm sloping downward- (market demand) sloping close substitutes none many b. Define oligopoly and discuss why an oligopolies faces two demand curves a. An oligopoly is a market characterized by a small number of firms who realize they are interdependent in their pricing and output policies. The number of firms is small enough to give each firm some market power. 6. The kinked demand curve model assumes that a business might face a dual demand curve for its product based on the likely reactions of other firms to a change in its price or another variable