Final answer:
In this case, the profits of the monopolistic competitor in the long run will be $0.
efore, the correct answer is B
Step-by-step explanation:
To determine the firm's profits in the long run, we need to compare the total revenue and total cost at different quantities sold.
Looking at the given data, we can see that the profit-maximizing quantity is 25. This is the quantity at which marginal revenue equals marginal cost. At this quantity, the firm's total revenue is $250 and its total cost is also $250.
To calculate the firm's profits, we subtract the total cost from the total revenue: $250 - $250 = $0.
Therefore, the correct answer is B) $0.
Your question is incomplete, but most probably the full question was:
A monopolistic competitor has the following information about cost and demand.
Quality Price ($) Total Revenue ($) Marginal revenue ($) Total cost($) Marginal cost($) Average cost ($)
0 15.00 0 175 - -
5 14.00 70 180 1.00 36.00
10 13.00 130 190 2.00 19.00
15 12.00 180 207 3.40 13.80
20 11.00 220 225 3.60 11.25
25 10.00 250 250 5.00 10.00
30 9.00 270 290 8.00 9.67
35 8.00 280 335 9.00 9.57
40 7.00 280 385 10.00 9.63
45 6.00 270 465 16.00 10.33
50 5.00 250 565 20.00 11.30
What will this firm's profits equal in the long run?
A. -$55
B. $0
C. $250
D. $280