In monopolistic competition,a firm produces 10,000 units when its marginal revenue equals its marginal cost. At this level of output, the firms average variable cost is $4.30 and its average fixed cost is $2.10. If the firm sells the product for $5 each, at best it is earning a. losses of $7,000. b. a profit of $7,000. c. losses of $14,000. d. a profit of $14,000. e. .There is not enough information provided to answer this question.
In monopolistic competition,a firm produces 10,000 units when its marginal revenue equals its marginal cost. At this level of output, the firms average variable cost is $4.30 and its average fixed cost is $2.10. If the firm sells the product for $5 each, at best it is earning a. losses of $7,000. b. a profit of $7,000. c. losses of $14,000. d. a profit of $14,000. e. .There is not enough information provided to answer this question.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![In monopolistic competition,a firm produces 10,000 units when its marginal revenue equals its marginal cost. At this level of output, the firms
average variable cost is $4.30 and its average fixed cost is $2.10. If the firm sells the product for $5 each, at best it is earning
a. losses of $7,000.
b. a profit of $7,000.
c. losses of $14,000.
d. a profit of $14,000.
e. There is not enough information provided to answer this question.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F12beaea1-ae12-453e-afbb-19cc74898896%2Fab4f922c-7582-496b-8c10-770610545237%2Fuuu4uaf_processed.png&w=3840&q=75)
Transcribed Image Text:In monopolistic competition,a firm produces 10,000 units when its marginal revenue equals its marginal cost. At this level of output, the firms
average variable cost is $4.30 and its average fixed cost is $2.10. If the firm sells the product for $5 each, at best it is earning
a. losses of $7,000.
b. a profit of $7,000.
c. losses of $14,000.
d. a profit of $14,000.
e. There is not enough information provided to answer this question.
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