Sparkle, one of many firms in the market for toothpaste, is in a long-run equilibrium.As do all of its competitors, Sparkle has a small market share, and Sparkle has been in business for a long time.
a.Identify the market structure in which Sparkle operates.Explain your answer.
b.What is Sparkle's profit or loss? Explain your answer.If you cannot determine the profit or loss, explain what information is missing.
c.Draw a diagram showing Sparkle's demand curve, marginal revenue curve, average total cost curve, and marginal cost curve.Label your diagram.

Question

Quizplus · Accepted Answer

The Answer of Sparkle, one of many firms in the market for toothpaste, is in a long-run equilibrium.As do all of its competitors, Sparkle has a small market share, and Sparkle has been in business for a long time.
a.Identify the market structure in which Sparkle operates.Explain your answer.
b.What is Sparkle's profit or loss? Explain your answer.If you cannot determine the profit or loss, explain what information is missing.
c.Draw a diagram showing Sparkle's demand curve, marginal revenue curve, average total cost curve, and marginal cost curve.Label your diagram.

Sparkle, One of Many Firms in the Market for Toothpaste