Question
Suppose that Table 2 below represents the demand schedule for Pizza at Marios Italian restaurant. Table 2: Mario's Demand Schedule Price (SR) Quantity of pizza
Suppose that Table 2 below represents the demand schedule for Pizza at Marios Italian restaurant.
Table 2: Mario's Demand Schedule
Price (SR) | Quantity of pizza |
26 | 30 |
24 | 60 |
22 | 90 |
20 | 120 |
18 | 150 |
16 | 180 |
14 | 210 |
A. Using the below table, calculate Marios total revenue and marginal revenue.
P | Q | TR | MR |
26 | 30 |
| N/A |
24 | 60 |
|
|
22 | 90 |
|
|
20 | 120 |
|
|
18 | 150 |
|
|
16 | 180 |
|
|
14 | 210 |
|
|
B. Based on your calculations, is Marios a perfectly competitive firm or a monopolistically competitive firm? Explain your reasoning.
C. Discuss two differences between a monopolistically competitive market and a competitive market.
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