A monopolistic competitor has the following information about cost and demand Quantity Price($) Total Revenue($) Marginal Revenue($) Total Cost($) Marginal Cost($) Average Cost($) 0 25 0 25 30 -- -- 2 24 48 23 35 2.5 17.5 4 23 92 21 45 5 11.25 6 22 132 19 60 7.5 10 8 21 168 17 77 8.5 9.63 10 20 200 15 100 11.5 10 12 19 228 13 126 13 10.5 14 18 225 11 165 19.5 11.79 16 17 272 9 210 22.5 13.13 18 16 288 7 260 25 14.44 20 15 300 5 320 30 16 What will the firm's profits equal in the short run? a) $102 b) $228 c) $0 d) $91
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We can do this by multiplying the quantity by the price for total revenue, and by adding up the fixed cost and the variable cost for total cost. Quantity Price($) Total Revenue($) Marginal Revenue($) Total Cost($) Marginal Cost($) Average Cost($) 0 25 0 25 30 Show more…
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