Consider the graph to the right. Is it possible to say whether this firm is a pe
ID: 1102377 • Letter: C
Question
Consider the graph to the right. Is it possible to say whether this firm is a perfectly competitive firm or amonopolistically competitive firm? A. Yes. This is a perfectly competitive firm because its demand curve is downward sloping B. Yes This is a monopolistically competitive firm MC because its demand curve is downward sloping O C. No. Either type of firm can face a downward-sloping 5.00 ATC demand curve. The graph shows a because the firm is making What quantity on the graph represents long-run equilibrium if the firm were perfectly competitive? | burritos per week | equilibrium economic profits. 2.00 0. MR Quantity (burritos per week)Explanation / Answer
Answer.) B.) Yes , This is a monopolistically competitive firm because it's demand curve is downward sloping.
The graph shows a SHORT-RUN equilibrium because the firm is making POSITIVE economic profits.
At 6 burritos per week , MC is equal to lowest ATC. Therefore, it represents long run equilibrium.