Solved

Table 16-2
a Monopolistically Competitive Firm Has the Following Cost

Question 174

Multiple Choice

Table 16-2
A monopolistically competitive firm has the following cost structure:


 Output  (Units)   T otal Cost  (Dollars)  1080020875301,025401,250501,550601,925702,375\begin{array} { | c | c | } \hline \begin{array} { c } \text { Output } \\\text { (Units) }\end{array} & \begin{array} { c } \text { T otal Cost } \\\text { (Dollars) }\end{array} \\\hline 10 & 800 \\\hline 20 & 875 \\\hline 30 & 1,025 \\\hline 40 & 1,250 \\\hline 50 & 1,550 \\\hline 60 & 1,925 \\\hline 70 & 2,375 \\\hline\end{array}
-Refer to Table 16-2. Suppose the monopolistically competitive firm faces the following demand curve: ?
 Quantity  (Units)   Price  (Dollars per unit)  105020423034402650186010702\begin{array} { | c | c | } \hline \begin{array} { c } \text { Quantity } \\\text { (Units) }\end{array} & \begin{array} { c } \text { Price } \\\text { (Dollars per unit) }\end{array} \\\hline 10 & 50 \\\hline 20 & 42 \\\hline 30 & 34 \\\hline 40 & 26 \\\hline 50 & 18 \\\hline 60 & 10 \\\hline 70 & 2 \\\hline\end{array} To maximize profit (or minimize losses) , the firm will produce


A) 20 units.
B) 30 units.
C) 40 units.
D) 50 units.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents