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Crusty's is a pizzeria with the following cost structure: its total fixed cost is $1200 per day, its total variable cost for producing q pizzas
Crusty's is a pizzeria with the following cost structure: its total fixed cost is $1200 per day, its total variable cost for producing q pizzas is q2 30, and its marginal cost is q 15. The daily quantity demanded for Crusty's pizzas is QD = 900 30P, where P is the price of a Crusty's pizza. The market for pizza is monopolistically competitive. (a) (3 marks) Explain which features of the market for pizza lead to its being monopo- listically competitive.
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