Bob competes in a monopolistically competitive market. Suppose some new firms enter the market, causing his perceived demand curve to shift. The following tables show Original Demand Curve his demand curves, before and after the change, and his cost information. Price Quantity TC Assume that Bob can only choose from the quantities of output given in the table. By how much will his profit change after these new firms enter the market? $33 $20,000 $32 1,000 $30,000 $31 2,000 $45,000 $30 3,000 $70,000 $29 4,000 $100,000 New Demand Curve Price Quantity TC $30 $20,000 $29 1,000 $30,000 $28 2,000 $45,000 $27 3,000 $70,000 $26 4,000 $100,000 O his profits will not change O decrease by $9.000 O increase by $11,000 O decrease by $11,000
Bob competes in a monopolistically competitive market. Suppose some new firms enter the market, causing his perceived demand curve to shift. The following tables show Original Demand Curve his demand curves, before and after the change, and his cost information. Price Quantity TC Assume that Bob can only choose from the quantities of output given in the table. By how much will his profit change after these new firms enter the market? $33 $20,000 $32 1,000 $30,000 $31 2,000 $45,000 $30 3,000 $70,000 $29 4,000 $100,000 New Demand Curve Price Quantity TC $30 $20,000 $29 1,000 $30,000 $28 2,000 $45,000 $27 3,000 $70,000 $26 4,000 $100,000 O his profits will not change O decrease by $9.000 O increase by $11,000 O decrease by $11,000
Chapter14: Monopolistic Competition And Product Differentiation
Section: Chapter Questions
Problem 7P
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Question
![Bob competes in a monopolistically competitive market. Suppose some new firms enter the market, causing his perceived demand curve to shift. The following tables show
Original Demand Curve
his demand curves, before and after the change, and his cost information.
Price
Quantity
TC
Assume that Bob can only choose from the quantities of output given in the table. By how much will his profit change after
these new firms enter the market?
$33
$20,000
$32
1,000
$30,000
$31
2,000
$45,000
$30
3,000
$70,000
$29
4,000
$100,000
New Demand Curve
Price
Quantity
TC
$30
$20,000
$29
1,000
$30,000
$28
2,000
$45,000
$27
3,000
$70,000
$26
4,000
$100,000
O his profits will not change
O decrease by $9,000
O increase by $11,000
O decrease by $11,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F432960f5-7e0f-46f5-8156-b768c88cda9c%2Fd000fedc-e4e5-499b-9f1f-a71641ea4925%2Fbq0jxm_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Bob competes in a monopolistically competitive market. Suppose some new firms enter the market, causing his perceived demand curve to shift. The following tables show
Original Demand Curve
his demand curves, before and after the change, and his cost information.
Price
Quantity
TC
Assume that Bob can only choose from the quantities of output given in the table. By how much will his profit change after
these new firms enter the market?
$33
$20,000
$32
1,000
$30,000
$31
2,000
$45,000
$30
3,000
$70,000
$29
4,000
$100,000
New Demand Curve
Price
Quantity
TC
$30
$20,000
$29
1,000
$30,000
$28
2,000
$45,000
$27
3,000
$70,000
$26
4,000
$100,000
O his profits will not change
O decrease by $9,000
O increase by $11,000
O decrease by $11,000
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