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2. Assume that the market for sushi in Providence is monopolistically competitive, and that when Haruki faces n competitors its demand curve is: 2.1. 2.2.
2. Assume that the market for sushi in Providence is monopolistically competitive, and that when Haruki faces n competitors its demand curve is: 2.1. 2.2. 2.3. 2.4. 2.5. 2.6. Yi(pi,n) =40 n p; Solve for Haruki's inverse demand curve, and state what it tells you in words. What is Haruki''s short-run marginal revenue M R;(y;, n) curve? [Hint: Begin by us- ing your answer to (2.1) to write an expression for Haruki's total revenue R;(yi,n) Solve for Haruki's optimal level of output y; as a function of n in the short run if their (short run)cost function is given by: Hint: will Haruki produce y > 0 if n > 307 What is the profit-maximizing price that Haruki should charge as a function of n if n 0 Cily) =4 o Y 0Oify; =0 (This form of cost function may arise in the long run due to unavoidable costs of positive production (e.g. the need for government licenses etc)
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