00:01
Okay, so we have a, it says answer the question on the basis of the following short run demand and cost data for a specific firm.
00:10
You've got a demand data table here with a cost data quantity.
00:15
So you've got price, price, and quantity, total outs, and total costs.
00:20
Okay, in the long run, the number of firms in this monopolistic competitive industry will most likely decrease, stay the same, increase, and so cannot be determined by the given data.
00:30
Okay, so first step should be we need to understand the table and the market structure.
00:36
The table we have here contains both demand and cost of data for a firm in a monopolistic competitive market.
00:43
The columns price, quantity, and total cost in the competition firms have some market power, but there is free entry and exit in the long run.
00:53
So now we have to analyze the profit situation of this specific firm.
00:56
To determine the profit of the firm at different output levels, we have to calculate the total revenue and the total cost for each quantity level.
01:04
Total revenue is calculated by the price times the quantity.
01:08
So we need the total revenue.
01:10
So total revenue...