Compute each producers total cost and average total cost

Reference no: EM13218518

The market for apple pies in the city of Ectenia is competitive and has the following demand schedule: Price Quantity Demanded $ 1 1,200 pies 2 1,100 3 1,000 4 900 5 800 6 700 7 600 8 500 9 400 10 300 11 200 12 100 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 part (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?

Reference no: EM13218518

Questions Cloud

What is the likely impact of the two events on food prices : "In late 2006 and early 2007, orange crops in Florida were smaller than expected, and the crop in California was put in a deep freeze by an Arctic cold front. As a result, the production of oranges was severely reduced. In addition, in early 2007,..

Which models predicts price stability in oligopoly : Consider cartel pricing, the price leadership model, and the kinked demand curve model. Which of these three models predicts price stability in oligopoly and which predict price instability, that is, unpredictable ups and downs in the level of pri..

How a monopoly decides how much to change : explain in words, and use a graph to illustrate, how a Monopoly decides how much to change and how much to produce. Include Marginal Cost, Marginal Revenue, Demand, Average Total Cost, and Profit. Assume the Monopoly is a Natural Monopoly and draw..

Identify the project strengths : Your response should identify the challenge areas and provide actions that the project's management team should have undertaken to prevent the situation. As part of the review, identify the project's strengths .

Compute each producers total cost and average total cost : Price Quantity Demanded $ 1 1,200 pies 2 1,100 3 1,000 4 900 5 800 6 700 7 600 8 500 9 400 10 300 11 200 12 100 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 ..

Find the magnitude of the load reflection coefficient : Using a slotted line, the voltage on a lossless transmission line was found to have a maximum magnitude of 1.5 V and a minimum magnitude of 0.6 V. Find the magnitude of the load's reflection coefficient 'Omega'.

Calculate the required thickness : Calculate the required thickness [in x-direction] of a silicon wafer in nm to create an 0.2 eV energy difference between the two lowest Enx energy states, use mn*= 0.3 x mo with mo = 9.11x10-31 kg. Assume the y and z-direction infinitely long.

What driving torque will be required : A meta dyne with a uniform air gap is driven at constant speed with a constant dc voltage applied to the q brushes the stator is unexcited. Determine the current in the two circuit and the voltage between the q brushes. what driving torque will be..

By how much is the marke overproducing private goods : Public goods can be produced by either the government or the private sector. Private goods can be produced in either sector as well. The problem is that the market tends to underproduce public goods and overproduce private goods.

User Account

All Pages