Question
A monopolistic competitor has the following information about cost and demand. Quantity Price ($) Total Revenue ($) Marginal Revenue ($) Total Cost ($) Marginal Cost
A monopolistic competitor has the following information about cost and demand.
Quantity | Price ($) | Total Revenue ($) | 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?
| A. | $250 | |
| B. | -$55 | |
| C. | $280 | |
| D. | $0 |
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Advanced Accounting
Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith
11th Edition
978-0132568968, 9780132568968
