Question: The following table depicts prices and total costs of a local used-books store. The bookstore competes with a number of similar stores, but it capitalized on its location and word of mouth reputation of it's coffee. Calculate the store's total revenue, total profit, marginal revenue, and marginal cost at each level of output. Based on marginal analysis, what is the approximate profit maximizing level of output for this business? Calculate the total average costs. Graph the stores’ short-run equilibrium by plotting demand, marginal revenue, average total costs and marginal costs. What is the total profit for this monopolistic competitor?

Output Price Total Cost

0 6.00 2.00

1 5.75 5.25

2 5.50 7.50

3 5.25 9.60

4 5.00 12.10

5 4.75 15.80

6 4.50 20.00

7 4.00 24.75