The table shows the total costs incurred by a firm to produc

The table shows the total costs incurred by a firm to produce different levels of output. It also shows the price that consumers are willing to pay for each level of output Quantity Price Total Cost 140 184 It the firm is a monopolistic competitor, what is the equilibrium price charged by the firm? OA. $65 ??. s77 O C. $57 O D. $80 Click to select your answer

Solution

Solution: 65

Working:

Where, MR = MC

Quantity	Price	Revenue	MR	TC	MC
1	80	80		55
2	77	154	74	100	45
3	72	216	62	140	40
4	65	260	44	184	44
5	57	285	25	235	51
6	48	288	3	290	55