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Consider the diagram below depicting the revenue and cost conditions faced by a monopolistically competitive firm, and then answer the following questions. MC B C

Consider the diagram below depicting the revenue and cost conditions faced by a monopolistically competitive firm, and then answer the following questions.

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MC B C D ATC. H Price and costs E Demand G A MR Quantity$70 $65 MC $60 $55 $50 $45 540 ATC $40 $35 532.50 Price and costs $30 525 $25 $20 514.30 $15 Demand $10 $5 MR 0 0.5 1.0 3. 5 :9 1.5 5 6.5 QuantityMarket Structure and Demand MC ATC B A D Price D2 QuantityAllocatio Productive Efficiency Efficiency Pure (Click to select) (Click to select) competition (Click to select) v (Click to select) v Monopolistic (Click to select) (Click to select) competition (Click to select) v (Click to select) v

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