The table below shows the total cost (TC) and marginal cost (MC) for Choco Lovers, a monopolistic firm producing different quantities of chocolate gift boxes. Fill in the blanks in the table. Quantity 0 5 10 15 20 25 30 Price $22 20 16 14 12 10 Profit Profit-maximizing quantity= Profit-maximizing price 18 Total Revenue 50 100 180 240 280 300 300 Total Cost $50 55 57.5 62.5 72.5 122.5 Marginal Cost Marginal Revenue $1 0.5 Instructions: Enter your answers as whole numbers. For profit, round your answer to 2 decimal places 2 4 0 10 12 8 0 20 2

Beatrice's Birthday Cakes operates in a monopolistically competitive market, so it is one bakery among many in the market for birthday cakes. The following table presents cost and revenue data for birthday cakes at Beatrice's. Quantity Produced (Units) 0 1 2 3 4 5 6 7 8 Costs Total Cost (Dollar 25 28 32 37 43 50 58 67 77 Marginal Quantity Cost (Dollars) (Units) Demanded 0 1 2 3 4 5 6 7 8 Revenues Price (Dollars per unit) 60 54 48 42 36 30 24 18 12 Total Marginal Revenue Revenue (Dollars) (Dollars) Refer to Table 16-4. What is the profit-maximizing output for Beatrice's Birthday Cakes? O a. 6 cakes Ob. 3 cakes

The accompanying graph depicts average total cost (ATC) marginal cost (MC), marginal revenue (M), and demand (D) 50 facing a monopolistically competitive firm MC 45 Place point A at the firm's profit maximizing price and quantity 40 35 What is the firm's total cost? ATC 30 25 total cost: 20 15 What is the firm's total revenue? 10 5 total revenue: $ MR 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95100 Quantity What is the firm's total profit? profit: $ Price and Cost ($)

Price $1.40 $1.00 $0.95 $0.85 $0.60 MR MC ATC D 0 300 500 900 1000 Quantity The monopolistically competitive firm represented in the graph above is in: long-run equilibrium because economic profits are zero at the profit-maximizing output level. short-run equilibrium because price exceeds average total cost at the profit-maximizing output level. both short-run and long-run equilibrium because price exceeds average total cost at the profit-maximizing output level. O both short-run and long-run equilibrium because price equals marginal cost at the profit-maximizing output level.