Answer:
The correct answer is B) $ 10 Dollars.
Explanation:
Monopolistic competition refers to an industry in which many businesses offer similar products or services but not perfect substitutes.
Barriers to entry and exit in a monopolistic competitive industry are low, and the decisions of any one firm do not directly affect those of its competitors.
Step 1
The total profit function is given as:
Profit = Total revenue – Total expenses (or Total Cost)
Total Revenue (TR) = Price X Quantity
Step 2
Using the attached Exhibit,
We compute TR as
$9 x 20 (Units)
This gives us $180.
Step 3
If Total Revenue is equal to $180 then
Total Profit (TP) = $180 - $170
(Total Cost is given in the exhibit)
TP therefore is equals to $10.
Cheers!
