MicroEcon

posted by .

The market for apple pies in the city is competitive and has the following demand schedule:
Price Quantity Demanded
$1 1,200
2 1,100
3 1,000
4 900
5 800
6 700
etc...
13 0

Each producer in the market has fixed costs of $9 and the following marginal cost:
Quantity Marginal cost
1 pie $2
2 4
3 6
4 8
5 10
6 12

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.

  • MicroEcon -

    ¤·¤±¤¤¤·

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. ECON

    I am working on this but, if I have part a and b wrong, all of the following question related will be wrong. Can you help me out?
  2. Economics

    Suppose that Neptune Music has the copyright to the latest CD of the heavy Iron Band. The market demand schedule for the CD is: Q = 800 – 100P. Symbolically, Q represents quantity demanded measured in thousands of CDs and P represents …
  3. Economics

    Suppose that Neptune Music has the copyright to the latest CD of the heavy Iron Band. The market demand schedule for the CD is: Q = 800 – 100P. Q represents quantity demanded measured in thousands of CDs and P represents the price …
  4. macroeconomics

    I am not sure how to draw the graphs can anyone help answer this question for me?
  5. Economics

    I am on the chapter for International Trade in the book. I neew to calculate the producer surplus after a trade and I am not sure if I am doing it right. Graph: Price of Pencil Sharpeners $16__________________________World Price >>>>>>>|>>>>>>>>>>>>>>>>>>>>>| …
  6. Microeconomics

    I am on the chapter for monoplies. I need to calculate the total cost for the following question. I am not quite clear if I am to use the $2 million that was paid to author to write the book to calculate the total cost, since the question …
  7. home economics

    Suppose that 200 gallons of gasoline are demanded at a particular price. If the price drops by 1 percent, the quantity demanded of gasoline increases to 200.5 gallon. which of the following statement is true?
  8. economics

    Market research has revealed the following information about the market for chocolate bars. The demand schedule can be represented by the equation QD=1,600-300P, where QD is the quantity demanded and P is the price. The supply schedule …
  9. Math

    The quantity demanded each month of Russo Expresso Makers is 250 when the unit price is $136.oo. The quantity demanded each month is 1,2oo when the unit price is $98.00. The suppliers will market 700 espresso makers if the unit price …
  10. Economics

    When XYZ firm entered the market for good two years back, it kept the price of its product low to attract customers away from its leading competitor. The firm has now established itself and has a market share of 20 percent. The management …

More Similar Questions