the Authentic Chinese Pizza shop would choose a quantity where marginal revenue equals marginal cost, or Q where

MR = MC. Here it would choose a quantity of 40 and a price of $16.

Quantity Price Total Revenue Marginal Revenue Total Cost Marginal Cost Average Cost

10

20

30

40

50

$23

$230

$20

$400

$18

$540

$16

$640

$14

$700

$23

$17

$14

$10

$6

TABLE 10.1 Revenue and Cost Schedule

$340

$34

$400

$480

$580

$700

$6

$8

$10

$12

$34

$20

$16

$14.50

$14
242 10 • Monopolistic Competition and Oligopoly

Quantity Price Total Revenue Marginal Revenue Total Cost Marginal Cost Average Cost

60

70

80

$12

$720

$10

$700

$8

$640

$2

–$2

–$6

TABLE 10.1 Revenue and Cost Schedule

$840

$14

$14

$1,020

$18

$14.57

$1,280

$26

$16

We can multiply the combinations of price and quantity at each point on the demand curve to calculate the

total revenue that the firm would receive, which is in the third column of Table 10.1. We calculate marginal
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