QUESTION: Pampered Pooches, a gourmet dog food company, operates in a monopolistically competitive market. The company is producing at the profit maximizing level of output and is currently earning a positive economic profit.

a) Draw a correctly labeled graph for Pampered Pooches and show each of the following: 1. The profit-maximizing output and price, labeled as Qm and Pm. 2. The area of profit, shaded completely.

HERE IS FEEDBACK FROM TEACHER:

12/15 = .8 a) graph and label: Qm, Pm, area of profit) (-3 points) NOTICE: ATC (Once ATC intersects MC at minATC, you should see an increase), area of profit (The bottom of the profit rectangle should be where Qm intersects minATC (through MC=MR and up...) and over to the price axis.