Solution for QID #3021: Jackie's Jewelry was one of the first firms to produce t | StudyHelpMe

Jackie's Jewelry was one of the first firms to produce toe rings in many colors and styles. Suppose that other jewelry stores see that this trend is big and so they begin to sell toe rings also. This entry causes the demand for Jackie's toe rings to decrease. The tables below show the price, quantity, average cost and marginal cost for Jackie's Jewelry before and after the other stores enter the market. Find the profit-maximizing price and quantity in each situation, and show whether Jackie is making a profit or a loss in each situation. Assume that Jackie can only choose from the quantities of output given in the table. Which table shows the long-run equilibrium?   Original Demand Price Quantity TC AC MC MR $30 1 $20 $20 - $30 $20 2 $25 $12.5 $5 $10 $12.5 3 $33 $11 $8 -$2.5 $8 4 $44 $11 $11 -$5.5 $5 5 $60 $12 $16 -$7     New Demand (after other firms enter) Price Quantity TC AC MC MR $19 1 $20 $20 - $19 $12.5 2 $25 $12.5 $5 $6 $8 33 $33 $11 $8 -$1 $5 4 $44 $11 $11 -$4 $1 5 $60 $12 $16 -$15   A monopolistic competitor that produces and sells laser printers has the following information on cost and demand:   Quantity (thousands) Price Total Revenue (Thousands) Marginal Revenue Total Cost (Thousands) Marginal Cost Average Cost 0 $120 $0 - $130 - - 1 $110 $110 $110 $165 $35 $165 2 $100 $200 $90 $210 $35 $165 3 $90 $270 $70 $270 $60 $90 4 $80 $320 $50 $345 $75 $86.25 5 $70 $350 $30 $430 $85 $86 6 $60 $360 $10 $530 $100 $88.33 7 $50 $350 -$10 $635 $105 $90.71 8 $40 $320 -$30 $745 $110 $93.13 9 $30 $270 -$50 $860 $115 $95.56 10 $20 $200 -$70 $1,000 $140 $100   What would be the price and quantity if this industry was perfectly competitive? What rule will the monopolistic competitor user to determine the profit-maximizing price? Will the outcome for the monopolistic competitor in the long run display productive efficiency? Will the outcome for the monopolistic competitor in the long run display allocative efficiency?