Competitive low-price-high-output equilibrium

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Jersey Imports, Inc., markets electronic devices imported from Thai producers. The company recently introduced an innovative and enormously successful 5 GB Joystick (computer memory device), but a flood of competitor entry and downward pressure on both prices and profits is expected during the coming year. A. Use Jersey Imports' price, output and total cost data to complete the following table: Price per unit Output (000) Total Revenue ($000) Marginal Revenue ($000) Total Cost ($000) Marginal Cost ($000) Average Cost ($) $50 0 $ 600 48 100 5,000 46 200 9,200 44 300 13,200 42 400 16,700 40 500 20,100 38 600 22,800 36 700 25,200 B. Assuming cost conditions remain constant, what is the monopolistically competitive high-price/low-output long-run equilibrium? C. What is the monopolistically competitive low-price/high-output equilibrium? (Note: This is also the perfectly competitive equilibrium.)

Reference no: EM131090287

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