This topic contains a solution. Click here to go to the answer

Author Question: The table below shows the demand and cost data facing Velvet Touches, a monopolistically competitive ... (Read 443 times)

magmichele12

  • Hero Member
  • *****
  • Posts: 559
The table below shows the demand and cost data facing Velvet Touches, a monopolistically competitive producer of velvet throw pillows.
 
  Quantity Price Total Revenue Marginal Revenue Total Cost Marginal Cost
  1 30 32
  2 28 43
  3 26 53
  4 24 64
  5 22 76
  6 20 90
  7 18 106
  8 16 126
 
  Use the data to answer the following questions.
  a. Complete the Total Revenue (TR), Marginal Revenue (MR), and Marginal Cost (MC) columns above.
  b. What are the profit-maximizing price and quantity for Velvet Touches?
  c. Is the firm making a profit or a loss? How much is the profit or loss? Show your work.
  d. Is this firm operating in the long run or in the short run? Explain your answer.
  e. If the firm's profit or loss is typical of all firms in the market for throw pillows, what is likely to happen in the future? Will there be more firms or will some existing firms leave the industry? Explain your answer.
  f. What will happen to the typical firm's profit or loss after all entry/exit adjustments?

Question 2

OPEC periodically meets to agree to restrict the cartel's oil output, and yet almost every member of OPEC produces more than its own output quota. This suggests that OPEC has
 
  A) a threat of substitute goods. B) a noncooperative equilibrium.
  C) new potential entrants. D) a cooperative equilibrium.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

momo1250

  • Sr. Member
  • ****
  • Posts: 338
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 29% of students answer this correctly







 

Did you know?

The average office desk has 400 times more bacteria on it than a toilet.

Did you know?

Nearly 31 million adults in America have a total cholesterol level that is more than 240 mg per dL.

Did you know?

Warfarin was developed as a consequence of the study of a strange bleeding disorder that suddenly occurred in cattle on the northern prairies of the United States in the early 1900s.

Did you know?

The heart is located in the center of the chest, with part of it tipped slightly so that it taps against the left side of the chest.

Did you know?

Only one in 10 cancer deaths is caused by the primary tumor. The vast majority of cancer mortality is caused by cells breaking away from the main tumor and metastasizing to other parts of the body, such as the brain, bones, or liver.

For a complete list of videos, visit our video library