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Suppose that Justin's Taco House is a monopolistically competitive restaurant that serves 435 meals per day (the output where MR = MC). At that output
Suppose that Justin's Taco House is a monopolistically competitive restaurant that serves 435 meals per day (the output where MR = MC). At that output level, the ATC per meal is $10 and consumers are willing to pay $20 per meal. What is the size of Justin's profit or loss? Will there be entry into this market or exit? Based on your answer, what do you think will happen toJustin's Taco Housedemand curve?
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