Suppose a monopolistically competitive firm \u02b9 s output where marginal revenue

Suppose a monopolistically competitive firm ʹ s

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48) Suppose a monopolistically competitive firmʹs output where marginal revenue equals marginalcost is 66 units and the price corresponding to this quantity is $18. If the average total cost at thisoutput is $16.55, then its total profit isA) $1,188.B) $1,092.30.C) $95.70.D) $1.45.Answer: C48)Diff: 2Page Ref: 435-436/435-436Topic: Short-Run Profit MaximizationLearning Outcome: Micro 15: Discuss the role of differentiation in monopolistic competition in comparison toother market conditionsAACSB: Analytic Skills49) If a monopolistically competitive firm is producing 50 units of output where marginal cost equalsmarginal revenue, total cost is $1,674 and total revenue is $2,000, its average profit is49)Diff: 2Page Ref: 435-436/435-436Topic: Short-Run Profit MaximizationLearning Outcome: Micro 15: Discuss the role of differentiation in monopolistic competition in comparison toother market conditionsAACSB: Analytic SkillsFigure 13-4Figure 13-4 shows cost and demand curves for a monopolistically competitive producer of iced-tea.50)Refer to Figure 13-4.What is the profit-maximizing output level?50)Diff: 1Page Ref: 435-436/435-436Topic: Short-Run Profit MaximizationLearning Outcome: Micro 15: Discuss the role of differentiation in monopolistic competition in comparison toother market conditionsAACSB: Analytic Skills15
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