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A monopolistically competitive firm has the following cost structure: Output 2 3 14 6 Total Cost($) 30 32 37 44 50 66 78 The firm

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A monopolistically competitive firm has the following cost structure: Output 2 3 14 6 Total Cost($) 30 32 37 44 50 66 78 The firm faces the following demand curve: Price ($) 20 18 15 13 19 4 Quantity 1 3 3. Refer to Scenario 16-3. If the government forces this firm to produce at its efficient scale, how many units will it produce and for what profit or loss? a. produce 3 units and make $9 b. produce 5 units and make $5 c. produce 5 units and lose $5 d. produce 6 units and lose $29

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