Table 16-5
A monopolistically competitive firm faces the following demand schedule for its product. In addition, the firm has total fixed costs equal to 20.
$$\begin{array} { | l | l | }
\hline \text { Price } & \text { Quantity } \
\hline \$ 30 & 1 \
\hline \$ 26 & 2 \
\hline \$ 22 & 3 \
\hline \$ 18 & 4 \
\hline \$ 14 & 5 \
\hline \$ 10 & 6 \
\hline \$ 6 & 7 \
\hline
\end{array}$$
-Refer to Table 16-5. When this firm profit maximizes and faces a constant marginal cost of $7, what is the amount of its markup over marginal cost?

Question

Table 16-5
A monopolistically competitive firm faces the following demand schedule for its product. In addition, the firm has total fixed costs equal to 20.
 $$\begin{array} { | l | l | } 
\hline \text { Price } & \text { Quantity } \
\hline \$ 30 & 1 \
\hline \$ 26 & 2 \
\hline \$ 22 & 3 \
\hline \$ 18 & 4 \
\hline \$ 14 & 5 \
\hline \$ 10 & 6 \
\hline \$ 6 & 7 \
\hline
\end{array}$$
-Refer to Table 16-5. When this firm profit maximizes and faces a constant marginal cost of $7, what is the amount of its markup over marginal cost?

Quizplus · Accepted Answer

The Answer of Table 16-5
A monopolistically competitive firm faces the following demand schedule for its product. In addition, the firm has total fixed costs equal to 20.
 $$\begin{array} { | l | l | } 
\hline \text { Price } & \text { Quantity } \
\hline \$ 30 & 1 \
\hline \$ 26 & 2 \
\hline \$ 22 & 3 \
\hline \$ 18 & 4 \
\hline \$ 14 & 5 \
\hline \$ 10 & 6 \
\hline \$ 6 & 7 \
\hline
\end{array}$$
-Refer to Table 16-5. When this firm profit maximizes and faces a constant marginal cost of $7, what is the amount of its markup over marginal cost?

Table 16-5 a Monopolistically Competitive Firm Faces the Following Demand

Table 16-5
a Monopolistically Competitive Firm Faces the Following Demand