Choobacca Corp. currently manufactures a subassembly for its main product. The costs per unit are as follows: direct materials, $1; direct labor, $10; variable overhead, $5; and fixed overhead, $8. Hansolo Company has contacted Choobacca with an offer to sell them 5,000 of the subassemblies for $22 each. Choobacca will eliminate $25,000 of fixed overhead if it accepts the proposal. What are the relevant internal costs for Choobacca?

Because this market is a monopolistically competitive market, you can tell that it is in long-run equilibrium by the fact thatmr=mc at the optimal quantity for each firm. furthermore, a monopolistically competitive firm's average total cost in long-run equilibrium isless than the minimum average total cost. true or false: this indicates that there is a markup on marginal cost in the market for engines. true false monopolistic competition may also be socially inefficient because there are too many or too few firms in the market. the presence of the externality implies that there is too little entry of new firms in the market.