Table 11-2 Eco Energy Is a Monopolistically Competitive Producer of a Sports

question 254

Multiple Choice

Table 11-2
$\begin{array}{|c|c|c|c|}\hline \begin{array}{c}\text { Quantity } \\\text { (cases) }\end{array} & \begin{array}{c}\text { Price } \\\text { (dollars) }\end{array} & \begin{array}{c}\text { Total Revenue } \\\text { (dollars) }\end{array} & \begin{array}{c}\text { Total Cost } \\\text { (dollars) }\end{array} \\\hline 1 & \$ 75 & \$ 75 & \$ 60 \\\hline 2 & 70 & 140 & 85 \\\hline 3 & 65 & 195 & 105 \\\hline 4 & 60 & 240 & 115 \\\hline 5 & 55 & 275 & 130 \\\hline 6 & 50 & 300 & 155 \\\hline 7 & 45 & 315 & 190 \\\hline 8 & 40 & 320 & 230 \\\hline 9 & 35 & 315 & 280 \\\hline\end{array}$ Eco Energy is a monopolistically competitive producer of a sports beverage called Power On. Table 11-2 shows the firm's demand and cost schedules.
-Refer to Table 11-2.What is likely to happen to the product's price in the long run?

• A) It will fall.
• B) It will increase.
• C) It will remain constant.
• D) This cannot be determined without information on its long-run demand curve.

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Definitions:

Tangible Capital

Physical assets owned by a firm that are used in the production process, such as machinery, buildings, and equipment.

Nonresidential Structures

Buildings and constructions excluding residential homes, often commercial, industrial, or public use facilities.

Human Capital

The economic value of a worker's experience and skills, including factors like education, training, intelligence, skills, health, and other things employers value such as loyalty and punctuality.

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