Problem: Suppose a firm in monopolistic competition has the following demand schedule. Suppose the marginal cost is a constant $70. How much will the firm produce? Is this a long- or short-run situation? If the firm is earning above-normal profit, what will happen to this demand schedule?
Price Quantity Price Quantity
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$100 1 $70 5
$95 2 $55 6
$88 3 $40 7
$80 4 $22 8