1. Consider the following tables, which show for the city of Fructosia (a) the demand for apple pies and (b) the cost of producing pies:

Demand for Apple Pies (a)

Price Per Pie	Pies Demanded Per Week
$1	1,100
$2	1,000
$3	900
$4	800
$5	700
$6	600
$7	500
$8	400
$9	300
$10	200
$11	100
$12	0

Cost of Producing Apple Pies

Quantity of Pies	Marginal Cost	Total Cost	Average Cost
1	$2
2	$4
3	$6
4	$8
5	$10
6	$12
7	$14

a. Reproduce table (b) on your own paper and add two columns to the right. Compute and enter into the new columns the total cost and average cost for producing each quantity of pie in the table. Dont forget to add in fixed cost.

b. If the market price of pies is $10, how many pies would be sold if producers are seeking to maximize profit?

c. Given the demand curve in table (a), how many pie producers will there be in Fructosia?

d. At a market price of $10 per pie, what profit will each producer in Fructosia earn?

e. Suppose that there is free entry and exit in this industry. What will the market price be in long-run equilibrium, after all firms that want to leave or enter have done so?

f. At long-run equilibrium, how many pie producers will there be in Fructosia, and how many total pies will be produced?

g. What profit will each pie producer earn in the long-run?

2. Biff's Bait Shop has the following cost schedule for bait:

Cost Schedule

Buckets of Bait Per Day	Variable Cost	Total Cost	Average Variable Cost	Average Total Cost	Marginal Cost
2	35	65
3	45	75
4	60	90
5	80	110
6	105	135
7	135	165

a. Reproduce the table on your own paper and fill in the missing information.

b. What is Biffs fixed cost of production?

c. Below what market price for bait will Biff shut down the plant immediately?

d. Between what two market prices for bait will Biff continue to produce temporarily, but go out of business when able to do so?

3. Every year, American television introduces many new shows, only about one-third of which survive past their first season. The few shows that last, however, prove to be very profitable.

a. In the summer of 2002, American Idol premiered on television and became immensely popular. How did FOX and other networks respond to this surprise hit?

b. What happened over the next several years to profits from American Idol? You dont need to check FOXs financial statements to get the answer, use the elimination principle!

URGENT!!! This is due at 9am EST on 11/11/2022!

But if you see the question is still unanswered after my time of request, please still leave a reply! My teacher doesn't give out the grades right away and I would love to see how you went about solving these questions. The more information you are willing to divulge the better! I want to learn this stuff. Thank you!!!