Eco Energy is a monopolistically competitive producer of a sports beverage called Power On. The table to the right shows the firm's demand and cost schedules. What is likely to happen to the product's price in the long run? OA. It will increase. OB. It will remain constant OC. It will fall. D. Cannot be determined without information on its long run demand curve. Quantity Price (Cases) (Dollars) $75 1 70 65 60 55 50 45 789 40 35 Total Revenue (Dollars) $75 140 195 240 275 300 315 320 315 Total Cost (Dollars) $60 85 105 115 130 155 190 230 280

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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Question
Eco Energy is a monopolistically competitive producer of a sports
beverage called Power On. The table to the right shows the firm's demand
and cost schedules.
What is likely to happen to the product's price in the long run?
OA. It will increase.
OB. It will remain constant
OC. It will fall.
OD. Cannot be determined without information on its long run demand
curve.
to select your answer.
Quantity Price Total Revenue
(Dollars)
(Cases)
(Dollars)
$75
$75
70
140
65
195
240
275
1
2
3
4
6678 a
60
55
50
45
40
35
300
315
320
315
Total Cost
(Dollars)
$60
85
105
115
130
155
190
230
280
Transcribed Image Text:Eco Energy is a monopolistically competitive producer of a sports beverage called Power On. The table to the right shows the firm's demand and cost schedules. What is likely to happen to the product's price in the long run? OA. It will increase. OB. It will remain constant OC. It will fall. OD. Cannot be determined without information on its long run demand curve. to select your answer. Quantity Price Total Revenue (Dollars) (Cases) (Dollars) $75 $75 70 140 65 195 240 275 1 2 3 4 6678 a 60 55 50 45 40 35 300 315 320 315 Total Cost (Dollars) $60 85 105 115 130 155 190 230 280
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