Demand and cost schedules for a monopolistic competitive firm Below
|
Price
(dollars per unit)
|
Quantity demanded
(units)
|
|
26
|
0
|
|
24
|
1
|
|
22
|
2
|
|
20
|
3
|
|
18
|
4
|
|
16
|
5
|
|
14
|
6
|
|
12
|
7
|
|
10
|
8
|
|
Quantity produced
(units)
|
Average total cost
(dollars)
|
Marginal cost
(dollars)
|
|
0
|
|
|
|
1
|
18.00
|
8.00
|
|
2
|
12.00
|
6.00
|
|
3
|
10.66
|
8.00
|
|
4
|
10.50
|
10.00
|
|
5
|
11.20
|
14.00
|
|
6
|
12.66
|
20.00
|
|
7
|
15.14
|
30.00
|
|
8
|
23.25
|
80.00
|
1. What is the profit-maximizing level of output and price?
2. What amount of profit is the firm earning?
3. Is this firm in a short-run or long-run equilibrium? Explain