Review Solved Problem 12.3 and then answer the following: Suppose the equilibrium price of basketballs falls to $2.50. Now how many basketballs will Andy produce? What price will he charge? How much profit (or loss) will he make?
Output per Day Total Cost
0............................................................$1.00
1..............................................................2.50
2..............................................................3.50
3..............................................................4.20
4..............................................................4.50
5..............................................................5.20
6..............................................................6.80
7..............................................................8.70
8............................................................10.70
9............................................................13.00