# Solved > 6  Numeric and Graphing Questions   Price (dollars:1963525 …

6  Numeric and Graphing Questions

 Price (dollars per unit) Quantity demanded (units) 26 0 24 1 22 2 20 3 18 4 16 5 14 6 12 7 10 8
 Quantity produced (units) Average total cost (dollars) Marginal cost (dollars) 0 1 18.00 8.00 2 12.00 6.00 3 10.66 8.00 4 10.50 10.00 5 11.20 14.00 6 12.66 20.00 7 15.14 30.00 8 23.25 80.00

1) The demand and cost schedules for a firm in monopolistic competition are in the above tables. What is the profit-maximizing level of output and price? What amount of profit is the firm earning? Is this firm in a short-run or long-run equilibrium? Why?

2) The above figure represents Tony’s Pizza Parlor, a firm in monopolistic competition.

a)What quantity will be produced?

b)What price will be charged?

c)What is Tony’s total cost?

d)What is Tony’s total revenue?

e)What is Tony’s economic profit or loss?

f)Is this a long-run equilibrium? Why or why not?

3) Draw an example of a firm in monopolistic competition that is earning an economic profit. Be sure to label all the curves. Indicate the area that equals the firm’s economic profit.

4) The above figure represents a restaurant operating in monopolistic competition.

a)What is the profit-maximizing level of output?

b)What price will the firm charge?

c)What is the firm’s economic profit (or loss)?

d)Is this a long-run equilibrium? Why or why not?

e)Is this firm producing its capacity output?

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