4. Now suppose the three firms are in a monopolistically competitive market and their demand curves are as follows:

Combining their cost data in practice problem 3 with their demand curves shown here, calculate how much each firm would produce and at what price.

Transcribed Image Text:

1ST FIRM'S 2ND FIRM'S 3RD FIRM'S QUANTITY PRICE PRICE PRICE 1 $8.00 $7.00 $9.00 2 7.00 6.75 7.50 3 6.00 6.50 6.67 4 5.25 6.25 6.00 5 4.00 6.00 5.40 6 3.00 5.75 4.84