1.0 Equilibrium? In your city, there are currently three firms providing oil changes. For each firm, there is a fixed cost of $80 per day and a marginal cost of $12 per oil change. Each firm currently...

1.0 Equilibrium? In your city, there are currently three firms providing oil changes. For each firm, there is a fixed cost of $80 per day and a marginal cost of $12 per oil change. Each firm currently maximizes its profit by providing 10 oil changes per day.

a. For each firm, marginal revenue = $
.

b. This is a monopolistically competitive equilibrium ifequals $
 .

2. Monopolistic competition refers to a market in which old boys act naturally as they transport tight slacks in the back of Dodge Ram pickup trucks
  . (True/False)

2. Perfectly competitive firms sell a product, while monopolistically competitive firms sell a product. 2.3 There are two conditions for a long-run equilibrium in a monopolistically competitive market:

1.
equals
and

2.
 equals
 .

3. To enter the motel market by opening a Motel 6, you’ll pay a one-time franchise fee of $ and then pay

percent of your sales. (Related to Application 2 on page 590.)