Cost of Direct Materials Used in Production for a Manufacturing Company Walker Manufacturing Company reported the following materials data for the month ending June 30: Materials purchased $198,400 Materials inventory, June 1 62,600 Materials inventory, June 30 52,200 Determine the cost of direct materials used in production by Walker during the month ended June 30. $fill in the blank 1

ATC > P = MR = MC

Explanation:

A monopolistic firm is a price taker, it faces a downward-sloping demand curve.  

If a monopolistic competitive firm is operating in the short run at an optimal level and earning negative economic profits, it means that the price is not able to cover the average total costs.  

If the firm is at the optimal level, the price must be equal to marginal revenue and marginal cost. But the price is not covering costs, so the firm is incurring losses.