v Dashboard - Antelope Valley Cc x | Homework (Ch 09) MindTap - Cengage Learning X C ng.cengage.com/staticb/ui/evo/index.html? deploymentld=5839622340537210505082758348&eISBN=9781337111560&id=1995945234&snapshotld=3812144& : > > CENGAGE | MINDTAP Q Search this course ? Homework (Ch 09) X 4. Comparing monopolistic competition and perfect competition Suppose that a firm produces wool jackets in a monopolistically competitive market. The following graph shows its demand curve (D), marginal revenue curve (MR), marginal cost curve (MC), and long-run average cost curve (LRAC). Assume that all firms in the industry face the same cost A-Z structure. Place the tan point (dash symbol) on the graph to indicate the long-run monopolistically competitive equilibrium price and quantity for this firm. Next, place the purple point (diamond symbol) to indicate the point at which this firm would produce in the long run if it operated in a perfectly competitive market. Note: Dashed drop lines will automatically extend to both axes. bongo 100 8 Monopolistic Competition Outcome A+ RAC Perfect Competition Outcome 8 8 8 8 8 8 PRICE, COSTS, AND REVENUE (Dollars per jacket) C+ O D MC MR o 10 20 30 40 50 60 70 80 100 QUANTITY (Thousands of jackets per month)4 Dashboard - Antelope Valley X LS| [ R CENGAGE ' MINDTAP b4 Homework (Ch 09) Monopolistic Competition Outcome Perfect Competition Qutcome m @ > (U PRICE, COSTS, AND REVENUE (Dollars per jack: MR 0 1 20 2 4 B & W B W0 QUANTITY (Thousands of jackets per month) Compare the average cost and the output in the long-run equi m for a monopoiistically competitive firm and a perfectly competitive firm by completing the following table. Average Cost Output Under... (Dollars per jacket) (Thousands of jackets per month) Monopolistic Competition less than L [ Perfect Competition more than Because this market is a menopolistically competitive market, the firm's average cest in long-run equilibrium is w thelong-run the same as average cost it would achieve as a firm operating in a perfectly competitive market. The output of a menopolistically competitive firm in long-run equilibrium is v the output of a perfectly competitive firm. This difference in output is known as the of a monopolistically competitive firm. Continue without saving