The market for paper is perfectly competitive and there are 1,000 firms that produce paper. The first table sets out the market demand schedule for paper. Each producer of paper has the costs in the second table when it uses its least-cost plant.
a. What is the market price of paper?
b. What is the market€™s output?
c. What is the output produced by each firm?
d. What is the economic profit made or economic loss incurred by each firm?
In problem 7

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Quantity demanded (dollars per box) 3.65 5.20 6.80 8.40 10.00 11.60 13.20 (thousands of boxes per week) 500 450 400 350 300 250 200 Each producer of paper has the following costs when it uses its least-cost plant: Average ariable cos total cost Average Outut Marginal cost boxes (dollars per per week additional box) (dollars per box 200 250 300 350 400 450 500 6.40 7.00 7.65 8.40 10.00 12.40 20.70 7.80 7.00 7.10 7.20 7.50 8.00 9.00 12.80 11.00 10.43 10.06 10.00 10.22 11.00