1. A monopolistic competitive firm has carefully estimated industry demand. Its revenue projections for different levels of sales are listed in the following table. In addition, it estimates its total cost to be:

Question

1. A monopolistic competitive firm has carefully estimated industry demand. Its revenue projections for different levels of sales are listed in the following table. In addition, it estimates its total cost to be:

C = 20 + Q + Q2
Output
Revenue Total Cost Profit
1 90
2 160
3 210
4 240
5 250
6 240
7 210
8 160
9 90
10 0

a) Complete the table and determine the profit-maximizing level of output

Answer 1

Cost(1) = 20+1+1^2 = 22

profit = revenue - cost
Profit(1) = 90-22 = 68
fill in the others the same way