If software can only be produced in the quantities above

Reference no: EM13460878

A software producer has fixed costs of $20,000 per month and her Total Variable Costs (TVC) as a function of output Q are given below:

Q TVC Price

2,000 $5,000 $20

4,000 7,000 15

6,000 18,000 10

8,000 33,000 5

10,000 50,000 1

(a) If software can only be produced in the quantities above, what should be the production level if the producer operates in a monopolistic competitive market where the price of software at each possible quantity is also listed above? Why?

Reference no: EM13460878

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