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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.
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