Question

The following table shows the demand curve and cost information for a firm that is monopoly

Price	Quantity	TC
$10	0	$500
$9	200	$1,000
$8	400	$1,600
$7	600	$2,500
$6	800	$4,000

What quantity should they produce to maximize their profits?

200 units

400 units

800 units

600 units

Mary competes in a monopolistically competitive market. Suddenly, 5 new firms enter the market causing her perceived demand curve to shift. The following tables show her original and new demand curves and her cost information.

Assume that Mary can only choose from the quantities of output given in the table. By how will the quantity that she produces change after the new firms enter the market?

Original Demand Curve

Price	quantity	TC
30	0	$130
25	10	$140
20	20	$260
15	30	$450
10	40	$660

New Demand Curve

25	0	$130
20	10	$140
15	20	$260
10	30	$450
5	40	$660

Decrease by 5

Decrease by 10

Increase by 10

Increase by 5

Monopolistic competitor has the following information about cost and demand

Quantity	Price($)	Total Revenue ($)	Marginal Revenue ($)	Total Cost ($)	Marginal Cost ($)	Average Cost ($)
0	25	0	25	30	----	----
2	24	48	23	35	2.5	17.5
4	23	92	21	45	5	11.25
6	22	132	19	60	7.5	10
8	21	168	17	77	8.5	9.63
10	20	200	15	100	11.5	10
12	19	228	13	126	13	10.5
14	18	252	11	165	19.5	11.79
16	17	272	9	210	22.5	13.13
18	16	288	7	260	25	14.44
20	15	300	5	320	30	16

If this industry was perfectly competitive, what price would the good sell for?

$19

$23

$21

$15

Monopolistic competitor has the following information about cost and demand

Quantity	Price($)	Total Revenue ($)	Marginal Revenue ($)	Total Cost ($)	Marginal Cost ($)	Average Cost ($)
0	25	0	25	30	----	----
2	24	48	23	35	2.5	17.5
4	23	92	21	45	5	11.25
6	22	132	19	60	7.5	10
8	21	168	17	77	8.5	9.63
10	20	200	15	100	11.5	10
12	19	228	13	126	13	10.5
14	18	252	11	165	19.5	11.79
16	17	272	9	210	22.5	13.13
18	16	288	7	260	25	14.44
20	15	300	5	320	30	16

What will the firm