What is the amount of economic profit earned by the firm

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Reference no: EM13825718

Problem-

Suppose a monopolistically competitive firm is facing the following demand and cost information.

Price

Quantity Demanded

Total Cost

$30

10

200

29

11

208

28

12

217

27

13

227

26

14

240

25

15

255

24

16

272

a. If the firm is a profit maximizer, how many units of output should the firm produce? How did you find this number? Explain.

b. What price should the firm charge? Why? Explain.

c. What is the amount of economic profit (or economic loss) earned (or incurred) by the firm?

d. What do you predict will happen in the long-run? Why?

Additional Information-

The problem belongs to Economics and it is describe about calculating the number of units of output for profit maximizing and the price to be charged and the predictions for the long run, etc have been given.

Reference no: EM13825718

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