Posted by Anna on Tuesday, July 26, 2011 at 1:01am.
The market for apple pies in the city is competitive and has the following demand schedule:
Price Quantity Demanded
Each producer in the market has fixed costs of $9 and the following marginal cost:
Quantity Marginal cost
1 pie $2
A) compute each producer's total cost and average total cost for 1 to 6 pies.
B) The price of a pie is now $11. How many pies are sold? How many pies does each producer make? How many producers are there? How much profit does each producer earn?
C) Is the situation described in bar (b) a long-run equilibrium? Why or why not?
D) Suppose that in the long run there is free entry and exit. How much profit does each producer earn in the long-run equilibrium? What is the market price and number of pies each producer makes? How many pies are sold? How many pie producers are operating?
I know this is a lot but I really could use the help! Thanks.
No one has answered this question yet.
Answer this Question
economics - Market research has revealed the following information about the ...
Math - The quantity demanded each month of russo Espresso Makers is 250 when ...
Finite Math - The quantity demanded each month of russo Espresso Makers is 250 ...
Math - The quantity demanded each month of Russo Expresso Makers is 250 when the...
Economics/Math - Suppose there are four firms in a competitive market and that ...
Finite Matematics - The quantity demanded x each month of Russo Espresso Makers ...
Economics - The market is considered to be _____ (black market/equilibrium/...
home economics - Suppose that 200 gallons of gasoline are demanded at a ...
Microecon help - How would the following affect the equilibrium price and ...
university-health economics - Given the following demand function for medical ...
For Further Reading