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Table 1 below illustrates the competitive market demand and supply of bread. The units of bread are given in thousands. Table 1 : Market for
Table 1 below illustrates the competitive market demand and supply of bread. The units of bread are given in thousands. Table 1 : Market for Bread Price Quantity Quantity demanded(in 000s) supplied(in 000s) 120 0 100 20 80 40 60 60 40 80 20 100 0 120 Suppose they are 100 identical firms in the bread market. a) Determine the amount each firm will produce? (5 marks) b) Calculate the consumer surplus, producer surplus, and total surplus at market equilibrium. (15 marks)
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