Use the accompanying graph, which shows the marginal cost and average total cost curves for the shoe store Zapateria, a perfectly competitive firm. a. How many pairs of shoes will zapateria produce if the market price of shoes is $70 a pair? b. What is the total profit zapateria will earn if the market price of shoes is $70 a pair? c. Should zapateria expect more shoe stores to enter this market? Why or why not? d. What is the long-run equilibrium price in the shoe market assuming it is a constant/cost industry?
Use the accompanying graph, which shows the marginal cost and average total cost curves for the shoe store Zapateria, a perfectly competitive firm. a. How many pairs of shoes will zapateria produce if the market price of shoes is $70 a pair? b. What is the total profit zapateria will earn if the market price of shoes is $70 a pair? c. Should zapateria expect more shoe stores to enter this market? Why or why not? d. What is the long-run equilibrium price in the shoe market assuming it is a constant/cost industry?
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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Use the accompanying graph, which shows the marginal cost and average total cost curves for the shoe store Zapateria, a perfectly competitive firm.
a. How many pairs of shoes will zapateria produce if the market price of shoes is $70 a pair?
b. What is the total profit zapateria will earn if the market price of shoes is $70 a pair?
c. Should zapateria expect more shoe stores to enter this market? Why or why not?
d. What is the long-run equilibrium price in the shoe market assuming it is a constant/cost industry?
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