Math  /  Data & Statistics

Question\begin{tabular}{|c|c|c|c|c|} \hline Demand Data & Cost Data & \multicolumn{3}{|l|}{} \\ \hline (1) Price & (2) Price & (3) Quantity & Output & Total Cost \\ \hline \$11.00 & \$10.00 & 6 & 6 & \$61 \\ \hline 9.99 & 8.86 & 7 & 7 & 62 \\ \hline 9.00 & 8.00 & 8 & 8 & 64 \\ \hline 8.00 & 7.00 & 9 & 9 & 67 \\ \hline 7.10 & 6.10 & 10 & 10 & 72 \\ \hline 6.00 & 5.00 & 11 & 11 & 79 \\ \hline 5.15 & 4.15 & 12 & 12 & 86 \\ \hline \end{tabular}
Suppose that entry into the industry changes this firm's demand schedule from columns (1) and (3) to columns (2) and (3). Economic profit will (A) decline to about zero. (B) fall by $10\$ 10. (C) increase by $10\$ 10. (D) fall to $6\$ 6.

Studdy Solution
The profit falls by $10\$10, so the answer is (B).

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