Answer Q47 & Q48, based on the following demand and cost data for a specific firm in a monopolistic competitive industry. (1) (2) (3) (4) (5) (6) (7) (8) (9) Total Demand Data Cost Data Profit = TR - TC Output Price-1 TR-1 Price-2 TR-2 Total Cost MC Profit-1 Profit-2 2 $34 $23 $51 N.A. 3 30 20 60 4 26 17 70 5 22 14 82 6. 18 11 98 7 14 8. 118 47. If columns (1) “Total Output (Q)" and (2) “Price-1" are this firm's demand schedule (i.e., ignore Price-2, TR-2, Profit-2), the profit-maximizing level of output will be units. A) 2 B) 3 C) 4 D) 5 E) 6 48. Suppose that entry of new firms into the industry changes price data in this firm's demand schedule from column (2) to column (4) "Price-2". Then this firm's maximum economic profit will be A) $34 b) $28 C) $14 D) $0 E) -$5

Answer Q47 & Q48, based on the following demand and cost data for a specific firm in a monopolistic competitive industry. (1) (2) (3) (4) (5) (6) (7) (8) (9) Total Demand Data Cost Data Profit = TR - TC Output Price-1 TR-1 Price-2 TR-2 Total Cost MC Profit-1 Profit-2 2 $34 $23 $51 N.A. 3 30 20 60 4 26 17 70 5 22 14 82 6. 18 11 98 7 14 8. 118 47. If columns (1) “Total Output (Q)" and (2) “Price-1" are this firm's demand schedule (i.e., ignore Price-2, TR-2, Profit-2), the profit-maximizing level of output will be units. A) 2 B) 3 C) 4 D) 5 E) 6 48. Suppose that entry of new firms into the industry changes price data in this firm's demand schedule from column (2) to column (4) "Price-2". Then this firm's maximum economic profit will be A) $34 b) $28 C) $14 D) $0 E) -$5

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Compare graphically welfare implications of the long run equilibrium of a monopolistically competitive industry, monopoly and perfectly competitive industry.
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