Table 16-2
a Monopolistically Competitive Firm Has the Following Cost

Table 16-2
A monopolistically competitive firm has the following cost structure:
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$$\begin{array} { | c | c | } \hline \begin{array} { c } \text { Output } \\\text { (Units) }\end{array} & \begin{array} { c } \text { T otal Cost } \\\text { (Dollars) }\end{array} \\\hline 10 & 800 \\\hline 20 & 875 \\\hline 30 & 1,025 \\\hline 40 & 1,250 \\\hline 50 & 1,550 \\\hline 60 & 1,925 \\\hline 70 & 2,375 \\\hline\end{array}$$ ​
-Refer to Table 16-2. Suppose the monopolistically competitive firm faces the following demand curve: ?
$$\begin{array} { | c | c | } \hline \begin{array} { c } \text { Quantity } \\\text { (Units) }\end{array} & \begin{array} { c } \text { Price } \\\text { (Dollars per unit) }\end{array} \\\hline 10 & 50 \\\hline 20 & 42 \\\hline 30 & 34 \\\hline 40 & 26 \\\hline 50 & 18 \\\hline 60 & 10 \\\hline 70 & 2 \\\hline\end{array}$$ To maximize profit (or minimize losses) , the firm will produce

A) 20 units.
B) 30 units.
C) 40 units.
D) 50 units.

Correct Answer:

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