Question

Suppose that a monopolistically competitive restaurant is currently serving 230 meals per day (the output where mr = mc). at that output level, atc per meal is $10 and consumers are willing to pay $12 per meal.

Answer 1

Answer:

460$ profit

Explanation:

Marginal revenue is equal to marginal cost which shows that the restaurant is working in a competitive environment.

The restaurant is serving 230 meals, per meal cost is 10$.

The total cost of serving 230 meals is = 230*10 = 2300$  

The restaurant is earning 2$ profit per meal, the total profit is = 230* 2= 460$