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The table below shows the demand and cost data facing “Velvet Touches” a monopolistically competitive producer of velvet throw pillows. Use the data to answer the following questionsMarginal cost324353647690106126a. What is the profit maximizing price and quantity for the Velvet Touches?b. Is the firm making a profit or loss and how much? Show all workc. Is the firm operating in long-run or short-run? Explain your answerd. How “Velvet Touches” can increase its profit in short-run?e. If the firm profit or loss is typical of all firms in the market for decorative pillows, what is likely to happen in the long-run?f. Will there be more firms or will some exit the industry? Explain your answerg. What will happen to the typical firm’s profit or loss after all entry/exit adjustments?
The table below shows the demand and cost data facing “Velvet Touches” a monopolistically competitive producer of velvet throw pillows. Use the data to answer the following questionsQ Price TR…
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