4. Consider the short-run cost and demand data for a monopolistic competitor given in the table below. Compute the missing data. Output Total cost Marginal cost Quantity demanded Price Marginal revenue 0 $750 $180 1 120 $1165 $ 2135 2150 3 165_ 3135 4210 41205 270. 5 105 6 3456 90. 74 a) At what output level and at what price will the firm produce in the short run? What will be the total profit? (b) What will happen to demand, price, and profit in the long run?

Andreas Day Spa began to offer a relaxing aromatherapy treatment. The film asks you how much to charge to maximize profits. The first two columns in Table 10.5 provide the price and quantity for the demand curve for treatments. The third column shows its total costs. For each level of output, calculate total revenue, marginal revenue, average cost, and marginal cost. What is the profit-maximizing level of output for the treatments and how much will the firm earn in profits?

How does a monopolistic competitor choose its profit-maximizing quantity of output and price?

Make a case for why monopolistically competitive industries never reach long-run equilibrium.