Answer the question on the basis of the following demand and cost data for a specific firm.Demand DataCost Data(1) Price(2) Price(3) QuantityOutputTotal Cost$11.00$10.0066$619.998.8677629.008.0088648.007.0099677.106.101010726.005.001111795.154.15121286Suppose that entry into the industry changes this firm's demand schedule from columns (1) and (3) to columns (2) and (3). Economic profit will:a.decline to about zerob.increase by $10.c. fall by $10d. fall by $6

When all expenditures are covered and paid from total revenue, total profit is calculated.

Answered: Answer the question on the basis of the…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Answer the question on the basis of the following demand and cost data for a specific firm.

Demand Data	Cost Data
(1) Price	(2) Price	(3) Quantity	Output	Total Cost
$11.00	$10.00	6	6	$61
9.99	8.86	7	7	62
9.00	8.00	8	8	64
8.00	7.00	9	9	67
7.10	6.10	10	10	72
6.00	5.00	11	11	79
5.15	4.15	12	12	86

Suppose that entry into the industry changes this firm's demand schedule from columns (1) and (3) to columns (2) and (3). Economic profit will:

a.decline to about zero

b.increase by $10.

c. fall by $10

d. fall by $6

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