Instructions: Enter your responses as a whole number. a. What price will prevail in this market? b. What quantity is produced? |smoothies

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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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: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 $
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
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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