Question: Price/Output Equilibrium : JAG, Inc., makes stain resistant carpet using a process that locks PTF (aka Teflon) into the fibers. During recent years, its unique carpet has successfully exploited a profitable niche in the market. The company's monopoly position in this market niche is now threatened by a competitor's announcement of a new device with capabilities similar to those of the JAG product.

1. Complete the following table based on the JAG product's price, output and costs per month:
   
2. While JAG still enjoys a monopoly position, what is their output, price, and profit at the profit-maximizing activity level?
3. What is the output, price, and profit for this product if a monopolistically competitive equilibrium evolves in this market following the successful introduction of the competitor's product? (Assume similar costs conditions for each firm).

Price: $2.99

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