The Table Below Shows the Demand and Cost Data Facing

question 185

Essay

The table below shows the demand and cost data facing "Velvet Touches," a monopolistically competitive producer of velvet throw pillows.

Use the data to answer the following questions.
a.Complete the Total Revenue (TR), Marginal Revenue (MR), and Marginal Cost (MC)columns above.
b.What are the profit-maximizing price and quantity for Velvet Touches?
c.Is the firm making a profit or a loss? How much is the profit or loss? Show your work.
d.Is this firm operating in the long run or in the short run? Explain your answer.
e.If the firm's profit or loss is typical of all firms in the market for throw pillows, what is likely to happen in the future? Will there be more firms or will some existing firms leave the industry? Explain your answer.
f.What will happen to the typical firm's profit or loss after all entry/exit adjustments?

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Definitions:

Total Media Use

The cumulative amount of time spent engaging with various forms of media, including television, internet, and mobile devices.

Social Capital

The resources that communities provide children and families, including not only schools, health services, and so on, but also social structures, expectations for behavior, and levels of trust and cooperation among community members.

Ecological Networks

A system of interlinked and interdependent biological communities and their physical environment.

Verbal Aggression

The use of words to harm or attack someone, which can include insults, threats, or prejudicial comments.