The table to the right shows the demand and cost dala facing

The table to the right shows the demand and cost dala facing a monopolintically competitive producer of canvas bags Total Cost $14 20 20 32 38 Quantity Price 16 14 12 10 Whal are the firm\'s proft- maximiaing or loss-minimizing price and quar O A. This cannot be delemined from the information given O B. The frm should shut down temporarily OC. price $12, quanility 4 OD. price $10quantity Click to select your answer esc 8 4

Solution

Equilibrium condition:MR=MC

Equilibrium is established at p=12,Q=4

Answer-C

Q	P	TR(P*Q)	MR	TC	MC
1	18	18	-	14
2	16	32	14	20	6
3	14	42	10	26	6
4	12	48	6	32	6
5	10	50	2	38	6
6	8	48	-2	44	6