Suppose that the monthly market demand schedule for Frisbees is listed below: Price $8 $7 $6 $5 $4 $3 $2 Quantity demanded 1,000 2,000 8,000 16,000 32,000 64,000 Suppose further that the marginal and average costs of Frisbee production for every competit Rate of output 100 200 300 400 500 600 Marginal cost $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 Average total cost $2.00 $2.50 $3.00 $3.50 $4.00 $4.50 Finally, assume that the equilibrium market price is $4 per Frisbee. (a) Identify this firm's profit-maximizing rate of output. Instructions: Enter your response as a whole number. units of output (b) Draw the market demand curve. Prev 9 of 9 Next DELL

Suppose that the monthly market demand schedule for Frisbees is listed below: Price $8 $7 $6 $5 $4 $3 $2 Quantity demanded 1,000 2,000 8,000 16,000 32,000 64,000 Suppose further that the marginal and average costs of Frisbee production for every competit Rate of output 100 200 300 400 500 600 Marginal cost $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 Average total cost $2.00 $2.50 $3.00 $3.50 $4.00 $4.50 Finally, assume that the equilibrium market price is $4 per Frisbee. (a) Identify this firm's profit-maximizing rate of output. Instructions: Enter your response as a whole number. units of output (b) Draw the market demand curve. Prev 9 of 9 Next DELL

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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