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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 $13 per meal.
a. Assume that the allocatively efficient output level in long-run equilibrium, suppose that this restaurant charges $11 per meal for 180 meals and that the marginal cost of the 180th meal is $9
What is the size of the firm's profit?
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