Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Having trouble figuring out how exactly they want this to be solved

Transcribed Image Text:Instructions: Enter your responses as a whole number.
a. What price will prevail in this market?
b. What quantity is produced?
smoothies
c. How much profit (loss) does each firm make?
2$
per firm
d. What happens to price if two more identical firms enter the market?
Price falls to $

Transcribed Image Text:Suppose the following data describe the demand for fruit smoothies:
Price
$1
$10
$9
$8
$7
$6
$5
$4
$3
$2
Quantity
demanded
7
10
13
16
19
22
25
28
31
34
Five identical, perfectly competitive firms are producing these smoothies. The cost of producing these smoothies at each firm is the
following:
Quantity
produced
0 1
2
3
4 5 6
7
8 9
10
Total cost
$5
$8
$10
$13
$17
$22
$28
$36
$45
$55
$67
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