Q4. On the monopolist competition This table shows the demand schedule, marginal cost, and average total cost for a monopolistically competitive firm. quantity 0 1 2 3 4 5 Price $20 16 12 8 4 0 Marginal cost $2 4 6 8 10 Average total cost == $21 12 9.67 9 9 What is the price should this firm charge to maximize profit? a.$4 b.$8 c. $12 d. $16 How much profit will this firm earn at the monopolistically competitive price? a.$0 b.$5 c.$12 d.$16

Q4. On the monopolist competition This table shows the demand schedule, marginal cost, and average total cost for a monopolistically competitive firm. quantity 0 1 2 3 4 5 Price $20 16 12 8 4 0 Marginal cost $2 4 6 8 10 Average total cost == $21 12 9.67 9 9 What is the price should this firm charge to maximize profit? a.$4 b.$8 c. $12 d. $16 How much profit will this firm earn at the monopolistically competitive price? a.$0 b.$5 c.$12 d.$16

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter10: Monopolistic Competition And Oligoply

Section: Chapter Questions

Problem 4SQP

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