A monopolistic competitor has the following information about cost and demand. Price ($) Marginal Cost ($) Quantity Total Revenue Total Cost ($) Marginal Revenue ($) Average Cost($) ($) 15 15 175 14 70 13 180 1 36 10 13 130 11 190 19 15 12 180 207 3.4 13.8 20 11 220 7 225 3.6 11.25 25 10 250 250 5 10 30 9. 270 3 290 8 9.67 35 8 280 1 335 9.57 40 7 280 -1 385 10 9.63 45 6. 270 -3 465 16 10.33 50 250 -5 565 20 11.3 What will this firm's profits equal in the long run? -$55 $0 $250 $280

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
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Chapter1: Making Economics Decisions
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Problem 1QTC
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Question

A monopolistic competitor has the following information about cost and demand. 
 

Quantity

Price ($)

Total Revenue ($)

Marginal Revenue ($)

Total Cost  ($)

Marginal Cost ($)

Average Cost($)

0

15

0

15

175

5

14

70

13

180

1

36

10

13

130

11

190

2

19

15

12

180

9

207

3.4

13.8

20

11

220

7

225

3.6

11.25

25

10

250

5

250

5

10

30

9

270

3

290

8

9.67

35

8

280

1

335

9

9.57

40

7

280

-1

385

10

9.63

45

6

270

-3

465

16

10.33

50

5

250

-5

565

20

11.3


 
What will this firm’s profits equal in the long run?

A monopolistic competitor has the following information about cost and demand.
Price ($)
Marginal
Revenue ($)
Total Cost ($) Marginal Cost
($)
Quantity
Total Revenue
Average
Cost($)
($)
15
15
175
14
70
13
180
1
36
10
13
130
11
190
19
15
12
180
207
3.4
13.8
20
11
220
7
225
3.6
11.25
25
10
250
5
250
10
30
270
3
290
8.
9.67
35
8
280
335
9.57
40
7
280
-1
385
10
9.63
45
6.
270
-3
465
16
10.33
50
5
250
565
20
11.3
What will this firm's profits equal in the long run?
-$55
$0
$250
$280
Transcribed Image Text:A monopolistic competitor has the following information about cost and demand. Price ($) Marginal Revenue ($) Total Cost ($) Marginal Cost ($) Quantity Total Revenue Average Cost($) ($) 15 15 175 14 70 13 180 1 36 10 13 130 11 190 19 15 12 180 207 3.4 13.8 20 11 220 7 225 3.6 11.25 25 10 250 5 250 10 30 270 3 290 8. 9.67 35 8 280 335 9.57 40 7 280 -1 385 10 9.63 45 6. 270 -3 465 16 10.33 50 5 250 565 20 11.3 What will this firm's profits equal in the long run? -$55 $0 $250 $280
A monopolistic competitor has the following information about cost and demand.
Price ($)
Marginal
Revenue ($)
Total Cost ($) Marginal Cost
($)
Quantity
Total Revenue
Average
Cost($)
($)
15
15
175
14
70
13
180
1
36
10
13
130
11
190
19
15
12
180
207
3.4
13.8
20
11
220
7
225
3.6
11.25
25
10
250
5
250
10
30
270
3
290
8.
9.67
35
8
280
335
9.57
40
7
280
-1
385
10
9.63
45
6.
270
-3
465
16
10.33
50
5
250
565
20
11.3
What will this firm's profits equal in the long run?
-$55
$0
$250
$280
Transcribed Image Text:A monopolistic competitor has the following information about cost and demand. Price ($) Marginal Revenue ($) Total Cost ($) Marginal Cost ($) Quantity Total Revenue Average Cost($) ($) 15 15 175 14 70 13 180 1 36 10 13 130 11 190 19 15 12 180 207 3.4 13.8 20 11 220 7 225 3.6 11.25 25 10 250 5 250 10 30 270 3 290 8. 9.67 35 8 280 335 9.57 40 7 280 -1 385 10 9.63 45 6. 270 -3 465 16 10.33 50 5 250 565 20 11.3 What will this firm's profits equal in the long run? -$55 $0 $250 $280
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