ROBERT’S NEW WAY VACUUM CLEANER COMPANY IS A NEWLY STARTED SMALL BUSINESS THAT PRODUCES VACUUM CLEANERS AND BELONGS TO A MONOPOLISTICALLY COMPETITIVE MARKET. ….

Robert’s New Way Vacuum Cleaner Company is a newly started small business that produces vacuum cleaners and belongs to a monopolistically competitive market. Its demand curve for the product is expressed as Q = 5000 – 25P where Q is the number of vacuum cleaners per year and P is in dollars. Cost estimation processes have determined that the firm’s cost function is represented by TC = 1500 + 20Q + 0.02Q2.