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ECO - Calculate the marginal cost and marginal revenue of each unit of output

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Question;Assume that the short-run cost and demand data given in the table below confronta monopolistic competitor selling a given product and engaged in a given amount ofproduct promotion.Output TC (?) MC (?) QD Price (?) MR (?)0 25 0 601 40 1 552 45 2 503 55 3 454 70 4 405 90 5 356 115 6 307 145 7 258 180 8 209 220 9 1510 265 10 10a. Calculate the marginal cost and marginal revenue of each unit of output in theabove table.b. At what output level and at what price will the firm produce in the short run?What will be the total profit?c. What will happen to demand, price, and profit in the long run?

 

Paper#57616 | Written in 18-Jul-2015

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