A monopolistic competitor has the following information about cost and demand. Quantity Price ($) Total Marginal Total Cost Marginal Revenue Revenue ($) 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 35 40 45 9816 270 3 290 8 9.67 280 1 335 9 9.57 7 280 -1 385 10 9.63 270 -3 465 16 10.33 50 5 250 -5 565 20 11.3 Then, in the long run equilibrium, the firm will sell this good at what price? 1) $5 2) $7 3) $10 4) $14

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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A monopolistic competitor has the following information about cost and demand.
Quantity
Price ($) Total
Marginal
Total Cost Marginal
Revenue
Revenue ($)
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
35
40
45
9816
270
3
290
8
9.67
280
1
335
9
9.57
7
280
-1
385
10
9.63
270
-3
465
16
10.33
50
5
250
-5
565
20
11.3
Then, in the long run equilibrium, the firm will sell this good at what price?
1) $5
2) $7
3) $10
4) $14
Transcribed Image Text:A monopolistic competitor has the following information about cost and demand. Quantity Price ($) Total Marginal Total Cost Marginal Revenue Revenue ($) Cost ($) 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 35 40 45 9816 270 3 290 8 9.67 280 1 335 9 9.57 7 280 -1 385 10 9.63 270 -3 465 16 10.33 50 5 250 -5 565 20 11.3 Then, in the long run equilibrium, the firm will sell this good at what price? 1) $5 2) $7 3) $10 4) $14
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