-The above figure shows a restaurant engaged in monopolistic competition with other restaurants.The equilibrium price at this restaurant is ________ per meal.

Question

Quizplus · Accepted Answer

In monopolistic competition, firms set prices where marginal cost equals marginal revenue. The equilibrium price is typically where the demand curve intersects the average total cost curve, which is often higher than the marginal cost. In this scenario, $50 is likely the equilibrium price per meal.

-The Above Figure Shows a Restaurant Engaged in Monopolistic Competition