Topic: Discussion X Homework: Mon( X MindTap - Cenga X Search Results | C X Course Hero X Course Hero X + X C https:/g.cengage.com/staticb/ui/evo/index.html?deploymentld=5813538219621591114194498&eISBN=978133... . . . CENGAGE | MINDTAP Q Search this course ? Homework: Monopolistic Competition, Oligopoly, and Game Theory (Ch 24) X 3. Is monopolistic competition efficient? Suppose that a firm produces wooden train engines in a monopolistically competitive market. The following graph shows its demand curve, marginal revenue (MR) curve, marginal cost (MC) curve, and average total cost (ATC) curve. A-Z E Place a black point (plus symbol) on the graph to indicate the long-run monopolistically competitive equilibrium price and quantity for this firm. Next, place a grey point (star symbol) to indicate the minimum average total cost the firm faces and the quantity associated with that cost. EI + 100 90 bongo 80 Mon Comp Outcome 70 60 Min Unit Cost 50 PRICE (Dollars per engine) ? 40 A+ ATC 30 20 C+ 10 O MR Demand 10 20 30 40 50 60 70 80 90 100 QUANTITY (Thousands of engines) 54OF Cloudy Q Search 6:24 PM 4/11/2024 PRETopic: Discussion X Homework: Mon( X MindTap - Cenga X Search Results | C X Course Hero X Course Hero X + X C https:/g.cengage.com/staticb/ui/evo/index.html?deploymentld=5813538219621591114194498&eISBN=978133... . . . CENGAGE | MINDTAP Q Search this course ? Homework: Monopolistic Competition, Oligopoly, and Game Theory (Ch 24) X 70 60 Min Unit Cost PRICE (Dollars per engine) 50 A-Z 40 ATC 30 T 20 EI 10 MR Demand + 10 20 30 40 50 60 70 80 90 100 1 2 QUANTITY (Thousands of engines) bongo Because this market is a monopolistically competitive market, you can tell that it is in long-run equilibrium by the fact that at the optimal quantity. Furthermore, the quantity the firm produces in long-run equilibrium is the quantity at minimize MR > MC average total cost. P = ATC True or False: This indicates that there is no excess capacity in the market for engines. ? P > ATC A+ O True MR = MC O False O Grade It Now Save & Continue Continue without saving 54OF Cloudy Q Search W 6:24 PM 4/11/2024 PRETopic: Discussion X Homework: Mon( X MindTap - Cenga X Search Results | C X Course Hero X Course Hero X + X C https:/g.cengage.com/staticb/ui/evo/index.html?deploymentld=5813538219621591114194498&eISBN=978133... . . . CENGAGE | MINDTAP Q Search this course ? Homework: Monopolistic Competition, Oligopoly, and Game Theory (Ch 24) X 70 60 Min Unit Cost PRICE (Dollars per engine) 50 A-Z 40 ATC 30 T 20 EI 10 MR Demand + 10 20 30 40 50 60 70 80 90 100 1 2 QUANTITY (Thousands of engines) bongo Because this market is a monopolistically competitive market, you can tell that it is in long-run equilibrium by the fact that at the optimal quantity. Furthermore, the quantity the firm produces in long-run equilibrium is the quantity at which firms minimize average total cost. equal to True or False: This indicates that there is no excess capacity in the market for engines. greater than ? A+ O True less than O False O Grade It Now Save & Continue Continue without saving 54OF Cloudy Q Search W 6:25 PM 4/11/20242 PRE