The table below shows data for Flo's Beach Ball Company, a monopolistically competitive firm. Price Quantity Total Cost TR MR MC
$10 6 $50
$9 7 $53
$8 8 $57
$7 9 $62
$6 10 $68

Required:
a. Use the columns above to calculate Total Revenue, Marginal Revenue, and Marginal Cost at each output level.
b. In order to maximize profit, how many beach balls should Flo's Company produce, and what price should the firm charge?
c. At the profit-maximizing output level, what is the firm's total profit?
d. Given your answer from (b), what will happen to the beach ball industry in the long-run? [Describe the steps that will occur.] What will happen to the profits for Flo's Company?

b. a single paragraph.

a paragraph is a series of sentences that are organized and make sense, and are all related to a single topic . almost every piece of writing you do that is longer than a few sentences should be organized into paragraphs. this is because paragraphs show a reader where the subdivisions of an essay begin and end, and thus the reader see the organization of the essay into subjects in order to be able to understand its main points.

answer: in the short-run firms will respond by raising the price of turkey.

explanation: initially the long-run equilibrium is at a price of $5 per pound of turkey and a quantity of 50 million pounds per year. now, when webmd claims that a protein found in turkey will increase your expected lifespan by 4 years. the consumers demand for turkey will increase at every price shifting the demand curve to the right from d1 to d2. while, there will be no change in the supply curve in the short-run as it is not possible for producers to adjust supply so quickly. as a result the new equilibrium will occur at a higher price and a higher quantity of turkey.

thus, in the short run firms will respond by increasing the price of turkey, selling more quantity at a higher price and earning economic profits.