A monopolistic competitor has the following information about cost and demand. Quantity O 5 10 15...

 

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A monopolistic competitor has the following information about cost and demand. Quantity O 5 10 15 20 25 30 35 40 45 50 Price ($) 15 14 13 12 11 10 9 8 7 50 5 Total Marginal Revenue ($) Revenue ($) ($) 70 130 180 220 250 270 280 280 270 250 15 13 11 6 7 5 3 1 H 3 Total Cost -5 175 180 190 207 225 250 290 335 385 465 565 If this industry was perfectly competitive, what price would the good sell for? Marginal Cost ($) 1 2 3.4 3.6 5 500 8 9 10 16 20 Average Cost($) 36 19 13.8 11.25 10 9.67 9.57 9.63 10.33 11.3 A monopolistic competitor has the following information about cost and demand. Quantity O 5 10 15 20 25 30 35 40 45 50 Price ($) 15 14 13 12 11 10 9 8 7 50 5 Total Marginal Revenue ($) Revenue ($) ($) 70 130 180 220 250 270 280 280 270 250 15 13 11 6 7 5 3 1 H 3 Total Cost -5 175 180 190 207 225 250 290 335 385 465 565 If this industry was perfectly competitive, what price would the good sell for? Marginal Cost ($) 1 2 3.4 3.6 5 500 8 9 10 16 20 Average Cost($) 36 19 13.8 11.25 10 9.67 9.57 9.63 10.33 11.3

Answer rating: 100% (QA)

SOLUTION In a perfectly competitive market the price is determined by marginal cost marginal reven... View the full answer