Question A ProfitMaximizing Monopolistic Competitor 50 45 40

Question

A Profit-Maximizing Monopolistic Competitor 50 45 40 35 30 25 20 15 10 Marginal Cost The graph to the right shows costs, marginal revenue, and demand facing a monopolistically competitive firm Average Cost Price & Cost Refer to the graph to answer the three questions below Demand 0 Marginal Revenue -10 0 10 20 30 40 110 50 Quantity 60 70 80 90 100 What is the firm\'s total cost? What is the firm\'s total revenue? hat is the firm\'s total profit or loss? Number Number Number

Solution

Firm\'s Total cost = $1250 (i.e. 50 X $25)

Firm\'s Total Revenue = $1500 (i.e. 50 X $30)

Firm\'s Total Profit = $ 250 (i.e. 1500 - 1250)