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2. A halal cart in New York sells chicken platters. Assume that this is a perfectly competitive market. The cart has fixed costs of
2. A halal cart in New York sells chicken platters. Assume that this is a perfectly competitive market. The cart has fixed costs of $3000, and their variable costs are given in the table below. Fill in the rest of the table (show your calculations for full credit.) Quantity of chicken Fixed Costs Variable Total Marginal platters Costs Cost Cost 0 $3000 $0 $3000 200 $3000 $400 $3400 400 $3000 $1,000 $4000 600 $3000 $1,800 $4800 800 $3000 $3,600 $6600 1000 $3000 $7,000 $10000 3. Use your calculations from question two to answer the following questions. a) How many chicken platters will the cart make in each of the following cases? Explain your answers. The price of a platter is $3. The price of a platter is $9. The price of a platter is $17. b) Calculate the profit the cart will earn in each of these three cases. Show your calculations. 4. When the price of a chicken platter is $3, should the cart continue to operate, or should it temporarily shut down? Explain. 5. Explain what will happen, over time, if the halal carts are more profitable than businesses in other industries.
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