Consider a shop that produces bagels in a monopolistically competitive market. The graph below shows its demand curve (labeled Demand), marginal revenue curve (labeled MR), marginal cost curve (labeled MC), and average cost curve (labeled AC). Assume that the company is operating in the short run.
See attached files for full problem description.© BrainMass Inc. brainmass.com December 19, 2018, 10:50 pm ad1c9bdddf
Help is given to explain the shop's profit.