demand and total cost
The following schedule shows demand and total cost for a
monopolistic competitor:
Price Quantity Total Cost
$30 10 $200
29 11 208
28 12 217
27 13 227
26 14 238
25 15 250
24 16 263
a. To maximize profit the monopolistic competitor should
produce ______ units of output and charge a price of $_______.
b. At this level of output the firm earns a profit of
$________.
c. The last unit of output produced and sold adds $________
to revenue and $________ to cost.
d. One more unit of output would add $________ to revenue
and $________ to cost, thereby ________ profit by $________.
Categories: