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Figure: The Restaurant Market
-(Figure: The Restaurant Market) Use Figure: The Restaurant Market.The figure shows curves facing a typical restaurant.Assume that many firms,differentiated products,and easy entry and exit characterize the restaurant industry.The restaurant shown here will maximize profits at quantity:

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Use the following to answer question:
Figure: The Restaurant Market

-(Figure: The Restaurant Market) Use Figure: The Restaurant Market.The figure shows curves facing a typical restaurant.Assume that many firms,differentiated products,and easy entry and exit characterize the restaurant industry.The restaurant shown here will maximize profits at quantity:

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In a monopolistic competition market, like the restaurant industry, firms maximize profits where marginal cost (MC) equals marginal revenue (MR). This typically occurs at quantity Q2 in such diagrams.

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