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 $280
A monopolistic competitor has the following information about cost and demand. Price ($) 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 $280
Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter16: Monopolistic Competition
Section: Chapter Questions
Problem 3CQQ
Related questions
Question
A monopolistic competitor has the following information about cost and demand.
|
Quantity |
|
Total Revenue ($) |
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?
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
$280
Transcribed Image Text:A monopolistic competitor has the following information about cost and demand.
Price ($)
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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