Question: Demand Data Cost Data (1) Price (2) Price (3) Quantity Total Output Total Cost $50 $35 2 2 $45 45 30 3 3 55 40

Demand Data Cost Data
(1) Price (2) Price (3) Quantity Total Output Total Cost
$50 $35 2 2 $45
45 30 3 3 55
40 25 4 4 70
35 20 5 5 90
30 15 6 6 115
25 10 7 7 145
20 5 8 8 180

Suppose that entry of firms into the industry changes this firm's demand schedule from columns 1 and 3 to columns 2 and 3. Maximum economic profit will decrease to

  • $25.
  • $35.
  • zero.

  • $70.

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