Describe what is a monopolistic competitive firm

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(1)Suppose a firm produces and sells its output at $38 per unit, in what market is such a firm operating? Provide a brief explanation.

(2)Determine the economic capacity of the firm in part(1) if the firm's total cost function is TC(Q)=40Q-2Q2 +0.5Q3

(3) For the same firm determine the output that will maximize its profit

(4) How much profit (if any) could this firm earn by producing this profit maximizing output?

(5) What is a monopolistic competitive firm? Given the same resources with a firm in a perfectly competitive industry, how could output and prices (of output) be different for both firms?

Reference no: EM13242072

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