Question

1. Vitamin supplement industry is a monopolistic competition. Complete the following table:

Vitamin sold per day (Q)	Price (P)	Total Revenue (TR)	Marginal Revenue (MR)	Total Cost (TC)	Marginal Cost (MC)	Average Total Cost (ATC)	Profit
0	$6.00			$5.00
1	5.50			8.00
2	5.00			9.50
3	4.50			10.00
4	4.00			11.00
5	3.50			12.50
6	3.00			14.50
7	2.50			17.00
8	2.00			20.00
9	1.50			23.50
10	1.00			27.50

1. Complete the above table.
2. Draw demand curve, MR, MC, and ATC on the same graph.
3. Find profit maximizing output and price.
4. Shade the short-run profits for the vitamin producer.

Answer 1