Problem
You own a company in a monopolistically competitive market. Your marginal cost of production is $12 per unit. There are no fixed costs. The demand for your own product is given by the equation P = 48-(1/2)Q.
(a) Plot the demand curve, the marginal revenue curve, and the marginal cost curve.
(b) Compute the profit-maximizing output and price combination.
(c) Compute total revenue and total profit.
(d) In this monopolistically competitive industry, can these profits continue indefinitely?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.