the long run to the price of fertilizer, marginal cost, average total cost, the
ID: 1107843 • Letter: T
Question
the long run to the price of fertilizer, marginal cost, average total cost, the quantity supplied by each firm, and the total quantity supplied to the market. 10. The market for apple pies in the city of Ectenia is com- petitive and has the following demand schedule: Quantity Demanded 1,200 pies Price 1,100 1,000 900 800 700 600 500 400 300 200 100 2 4 10 12 13 Each producer in the market has fixed costs of $9 and the following marginal cost: Quantity 1 pie Marginal Cost $2 4 8 10 12 a. Compute each producer's total cost and average total cost for 1 to 6 pies.Explanation / Answer
Price = $11
Qty demanded = Qty supplied = 200
Each producer sells at MR=MC, so produce 5 qty each
No. of producers needed = 200/5 = 40
Profit of each producer = P*Q - TC
= 11*5 - 39
= 55 - 39
=$16
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