Suppose that the monthly market demand schedule for Frisbees as well as the marginal and average costs of Frisbee production for every competitive firm are given in the following table. Graph the market demand curve and identify the market equilibrium, graph the firm's cost curves, and then answer five questions about production and profit. Finally, assume that the equilibrium market price is $6 per Frisbee. Monthly Market Dammd Schedule for . " Monthly Firm Output, Margind Cost, and A Frisbees ' z . ' Cost 3 Price ' Quantity MNgind Aw Demanded Cost 1'on 383 ' 52.00 szuu 200 3.00 156 300 we a 7 400 5.00 am Monthly Market Demand Schedule for Frisbees Monthly Firm Output, Marginal Cost, and Average Total Cost a. Graph the market demand curve and identify the equilibrium price and quantity. b. Graph the firm's cost curves. Instructions: In the left graph, use the tool provided 'Demand' to plot the market demand curve (plot 7 points total). Then using the tool provided 'E' identify the equilibrium price and quantity. In the right graph, use the tools provided 'MC' and 'ATC' to plot the firm's marginal cost and average total cost curves (plot 6 points for each curve, 12 points total). c. How many Frisbees are being sold in equilibrium? d. How many (identical) firms are initially producing Frisbees? e. How much profit is the typical firm making? In view of the profits being made, more firms will want to get into Frisbee production. In the long run, these new firms will shift the market supply curve to the right and push the price down to average total cost, thereby eliminating profits. f. At what equilibrium price are all profits eliminated? s 9. How many firms will be producing Frisbees at this price