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Homework answers / question archive / Output 1 2 3 4 5 6 7 Total Cost($) 30 32 36 42 52 64 78 question: if this firm is in a typical monopolistically completive market, when marginal revenue is $110 and the price is $12, how many unit of output will it likely produce in the short run
Output 1 2 3 4 5 6 7
Total Cost($) 30 32 36 42 52 64 78
question: if this firm is in a typical monopolistically completive market, when marginal revenue is $110 and the price is $12, how many unit of output will it likely produce in the short run.
a. less than 4 unit of output
b. 4 unit of output
c. 5 unit of output
d. more than 5 unit of output
So, the correct option is C "5 units of output".
For Equilibrium,
MR = MC = 10
MC is equal to 10 at 5 units.
Workings:
MC = Change in Total Costs (TC) / Change in Output (Q)