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Answer the questions below on the basis of the following demand and cost data for a specific firm operating in a monopolistically competitive market.:
a. If columns (1) and (3) of the demand data shown above are this firm's demand schedule, what (how much) will be the profit-maximizing level of output for the firm.
Profit-maximizing level of output would be 8.
b. If columns (1) and (3) of the demand data shown above are this firm's demand schedule, what will be the profit-maximizing price for the firm?:
Profit-maximizing price would be $64
c. If columns (1) and (3) of the demand data shown above are this firm's demand schedule, how much economic profit (if any) will the firm make?
d. Suppose that entry by new firms into the industry changes this firm's demand schedule from columns (1) and (3) shown above to columns (2) and (3). How much profit will the firm make?
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