Final answer:
The profit-maximizing quantity for a monopolist is where MR=MC; for the raspberry firm, it is between 70 and 80. Total costs, total revenue, and profits can be calculated based on the data provided. Profits attract new firms, likely increasing supply, reducing prices, and potentially decreasing the farmer's future profits.
Step-by-step explanation:
Profit Maximizing Quantity and Impact on Market
The question asks several different aspects of economic decisions made by a monopolist or a firm in a perfectly competitive market. To summarize:
A. The profit-maximizing quantity for the monopolist is where marginal revenue (MR) equals marginal cost (MC), which is at a quantity of 5 according to Figure 9.6. For the perfectly competitive firm like the raspberry farm, the profit-maximizing quantity lies between 70 and 80 from Table 8.1.
B. At the profit-maximizing quantity, you would refer to the respective tables or figures illustrating total revenue (TR) and total cost (TC) for exact numbers. For example, if the profit-maximizing quantity were 60 for the raspberry farm, TR would be 240, TC would be 165, and the total profit would be the difference, which is 75.
C. The forgone profit at a quantity of 6 can be determined by comparing the total profit at the profit-maximizing quantity to the total profit at a quantity of 6, which would necessitate referring to specific data from provided tables or figures.
D. If the farmer is making a profit, it is likely that other firms will enter the market increasing the supply. This increase in supply could lead to a decrease in prices and an increase in the overall market quantity. As the supply increases, the price will likely fall, which, in turn, could reduce the farmer's future profits.