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Use the following graph for a monopolistically competitive firm to answer the next question. A graph depicts 4 curves with dollars on vertical axis and
Use the following graph for a monopolistically competitive firm to answer the next question. A graph depicts 4 curves with dollars on vertical axis and quantity of output (units) on horizontal axis.The horizontal axis from left to right lists values as 10, 20, 35, 45, and 50. The vertical axis from bottom to top lists values as 50, 52, 55, 65, 80, and 90. A u-shaped, slanting to the right curve labeled ATC is drawn below a decreasing line labeled D. Demand curve intersects ATC at two points. Another decreasing line labeled MR is drawn almost tangent to the base of ATC. A u-shaped curve labeled MC intersects all three curves and rises high above ATC. The dotted straight lines from both the axes connects to the following data points at D: first point of intersection of ATC and D (10, 90); (20, 80); (35, 65); point of intersection of MC and D at (45, 55); and second point of intersection of ATC and D at (50, 52). Dotted lines from both the axes connects to ATC at data point (20, 35) and connects to the point of intersection of MR and MC at (20, 20). In the short run, this monopolistically competitive firm will set price at Multiple Choice $55 and produce 45 units of output. $65 and produce 35 units of output. $50 and produce 35 units of output. $52 and produce 50 units of output
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