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

question 124

Multiple Choice

Answer the question on the basis of the following demand and cost data for a specific firm. $\quad$$\quad$$\quad$$\quad$$\text { Demand Data }$ $\quad$$\quad$$\quad$ $\text { Cost Data }$
$\begin{array}{|c|c|c|c|c|}\hline&&(3) &\text { Total } \\\text { (1) } & \text { (2) } & \text { Quantit } & \text { Output } & \text { Total } \\\text { Price } & \text { Price } & \text { Y} & & \text { Cost }\\\hline \$ 50 & \$ 35 & 2 & 2 & \$ 45 \\\hline 45 & 30 & 3 & 3 & 55 \\\hline 40 & 25 & 4 & 4 & 70 \\\hline 35 & 20 & 5 & 5 & 90 \\\hline 30 & 15 & 6 & 6 & 115 \\\hline 25 & 10 & 7 & 7 & 145 \\\hline 20 & 5 & 8 & 8 & 180 \\\hline\end{array}$ 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.

---

Definitions:

Experimental Philosophy

An approach within philosophy that uses empirical methods traditionally used in the sciences to research and test philosophical questions and concepts.

Experimental Method

The Experimental Method is a systematic and scientific approach to research in which the researcher manipulates one or more variables to determine their effect on a certain outcome.

Developmental Psychology

A branch of psychology that studies how people change over the lifespan, including physical, cognitive, social, intellectual, perceptual, personality, and emotional growth.

Social Psychology

The examination of the ways in which actual, imagined, or suggested presence of others impacts individuals' thoughts, emotions, and actions.