9. Problems and Applications Q9 The market for apple pies in the city of Ectenia is competitive and has the following demand schedule: Price Demand Schedule Quantity Demanded (Dollars) (Pies) 1 1,200 2 1,100 3 1,000 4 900 Each producer in the market has a fixed cost of $6 and the following marginal cost: Quantity Marginal Cost (Pies) 1 (Dollars) 10 1382 23456 14 Complete the following table by computing the total cost and average total cost for each quantity produced. Quantity Total Cost Average Total Cost (Pies) 1 2 3 4 5 6 (Dollars) The price of a pie is now $11. At a price of $11, are (Dollars) pies are sold in the market. Each producer makes producers in this market, each making a profit of $ pies, so there

9. Problems and Applications Q9 The market for apple pies in the city of Ectenia is competitive and has the following demand schedule: Price Demand Schedule Quantity Demanded (Dollars) (Pies) 1 1,200 2 1,100 3 1,000 4 900 Each producer in the market has a fixed cost of $6 and the following marginal cost: Quantity Marginal Cost (Pies) 1 (Dollars) 10 1382 23456 14 Complete the following table by computing the total cost and average total cost for each quantity produced. Quantity Total Cost Average Total Cost (Pies) 1 2 3 4 5 6 (Dollars) The price of a pie is now $11. At a price of $11, are (Dollars) pies are sold in the market. Each producer makes producers in this market, each making a profit of $ pies, so there

Principles of Economics (MindTap Course List)

8th Edition

ISBN:9781305585126

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter14: Firms In Competitive Markets

Section: Chapter Questions

Problem 9PA

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The market for apple pies in the city of Ectenia is competitive and has the followingdemand schedule:Price Quantity Demanded$ 1 1,200 pies2 1,1003 1,0004 9005 8006 7007 6008 5009 40010 30011 20012 10013 0 ch producer in the market has fixed costs of $9 and the following marginal cost:Quantity Marginal Cost1 pie $ 22 43 64 85 106 12a. 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 eachproducer make? How many producers are there? How much profit does eachproducer 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 eachproducer earn in the long-run equilibrium? What is the market price? How many piesdoes each producer make? How many pies are sold in the market? How many pieproducers are operating?
Attempts 8. Problems and Applications Q The market for apple pies in the city of Ectenis is competitive and has the following demand schedule: Price (Dollars) 1 2 3 7 8 Demand Schedule 9 10 11 12 13 Quantity Demanded Average: 14 (Pies) 1.200 1,100 1,000 900 800 (Dollars) 2 9 Each producer in the market has a fixed cost of $5 and the following marginal cost Quantity Marginal Cost (Pies) 1 2 3 4 5 11 13 15 700 600 500 400 300 200 100 0
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