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Answer the Question on the Basis of the Following Demand \quad

Question 124

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Answer the question on the basis of the following demand and cost data for a specific firm. \quad \quad \quad \quad Demand Data \text { Demand Data } \quad \quad \quad  Cost Data \text { Cost Data }
(3)  Total  (1)   (2)   Quantit  Output  Total  Price  Price  Y Cost $50$3522$4545303355402544703520559030156611525107714520588180\begin{array}{|c|c|c|c|c|}\hline&&(3) &\text { Total } \\\text { (1) } & \text { (2) } & \text { Quantit } & \text { Output } & \text { Total } \\\text { Price } & \text { Price } & \text { Y} & & \text { Cost }\\\hline \$ 50 & \$ 35 & 2 & 2 & \$ 45 \\\hline 45 & 30 & 3 & 3 & 55 \\\hline 40 & 25 & 4 & 4 & 70 \\\hline 35 & 20 & 5 & 5 & 90 \\\hline 30 & 15 & 6 & 6 & 115 \\\hline 25 & 10 & 7 & 7 & 145 \\\hline 20 & 5 & 8 & 8 & 180 \\\hline\end{array} Suppose that entry of firms into the industry changes this firm's demand schedule from columns 1 and 3 to columns 2 and 3. Maximum economic profit will


A) decrease to $25.
B) decrease to $35.
C) decrease to $70.
D) decrease to zero.

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