Assume that the short-run cost and demand data given in the table below confront a monopolistic competitor selling a given product and engaged in a given amount of product promotion. Compute the marginal cost and marginal revenue of each unit of output and enter these figures in the table.

(a) Compute the marginal cost and marginal revenue of each unit of output.
(b) At what output level and at what price will the firm produce in the short run? What will be the total profit? (16.7 points)
(c) What will happen to demand, price, and profit in the long run?

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ОифиТotal cost Marginal cost Quantity demanded Price Marginal revenue S 75 0 $180 120 165 135 150 165 135 210 120 270 5 5 105 345 90 435 75 540 60 б60 45 10 795 10 30 | | || 2. 3. | |