1. Table: Consider the following information for a firmQPA.MRTR9.509.008.5038.0047.50a. Calculate AR, MR and profit for each quantity?Which type of firm is it? How much should thefirm produce to maximize profitb. A student has a monthly budget of $120 to spendon either beer, which cost $6 each, or sodas, whichcost $4 each.i. Find out the largest number of beers and thelargest number of sodas the student couldafford to purchase in one month?ii. After buying 15 sodas, how many beers thatthe student could afford to purchase in onemonth?iii. Plot each of the bundles from parts A-C ona graph that measures Beers on the horizontalaxis and sodas on the vertical; connect thedots.iv. Show what happens to the budget constraintif the price of sodas rises to = $5 per soda.

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Answered: 1. Table: Consider the following…

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter16: Monopolistic Competition

Section: Chapter Questions

Problem 8PA

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1. Table: Consider the following information for a firm Q P A MR TR R 9.50 1 9.00 2 8.50 3 8.00 4 7.50 a. Calculate AR, MR and profit for each quantity? Which type of firm is it? How much should the firm produce to maximize profit