uestion 24 of 24 Map. Sapling Learning macmillan learning BNW is one of many, ma
ID: 1105121 • Letter: U
Question
uestion 24 of 24 Map. Sapling Learning macmillan learning BNW is one of many, many producers of luxury wheelchairs, which are differentiated to appeal to different market niches. BNWs relevant demand and cost curves are depicted below. Use this graph to answer the questions that follow. Assume there are no significant barriers to entryy Price per chair ($) Determine BNWs profit-maximizing price and quantity and enter them below Average Total Cost Quantity of chairs 2000 1800 1600 1400 1200 1000 800 600 400 200 Price per chair Marginal Cost Number Number | Chairs Calculate BNWs profit and enter it below Number Demand Marginal Revenue 0 100 200 300 400 500 600 700 800 900 Chairs per week Choose the answer below that best describes what is likely to happen in the long run in this industry Firms will enter this industry, increasing demand and marginal revenue at the firm level, until industry-wide economic profit is positive Firms will exit this industry, decreasing demand and marginal revenue at the firm level, until industry-wide economic profit is equal to zero Firms will enter this industry, decreasing demand and marginal revenue at the firm level, until industry-wide economic profit is equal to zero Firms will exit this industry, increasing demand and marginal revenue at the firm level, until industry-wide economic profit is negative Previous Check Answer Next DI Exit Submit Assignment HintExplanation / Answer
Ans
The profit maximizing price is 1200
And the quantity is 300
Profit=(1200*300)-(800*300)
=120000
Firms will enter this industry, decreasing demand and marginal revenue at the firm level until industry wide economic profits is equal to zero.
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