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Monopolistic Competition Firm AVC ATC MC P MR 90 190 90 165 165 85 135 80 155 145 80 113.33 70 145 125 75 100

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Monopolistic Competition Firm AVC ATC MC P MR 90 190 90 165 165 85 135 80 155 145 80 113.33 70 145 125 75 100 60 135 105 74 94 70 125 85 75 91.67 80 115 65 Given the above data, answer the following questions: 1. What is the output level this firm will operate at that will allow them to maximize profits? 2. What is the profit/loss per unit (rounded to the nearest full dollar)? 3. What is the profit/loss for the firm (rounded to the nearest full dollar)? 4. Given this company's current situation, would they be expected to: . shut down production immediately, or . continue to produce, but only in the short run, or o plan for long run production. Support your

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