The market for smoothies is perfectly competitive and the market demand schedule is in the first table.
Question:
Each of the 100 producers of smoothies has the costs given in the second table when it uses its least-cost plant.
a. What is the market price of a smoothie?
b. What is the market quantity of smoothies?
c. How many smoothies does each firm sell?
d. What is the economic profit made or economic loss incurred by each firm?
Transcribed Image Text:
Price (dollars per smoothie) 1.90 2.00 2.20 2.91 4.25 5.25 5.50 Quantity demanded smoothies per hour) 1,000 950 800 700 550 400 300 Average variable cost Average total cost Outpu Marginal cost (smoothies dollars per per hour) additional smoothie)(dollars per smoothie) 7.33 6.03 5.24 4.67 4.34 4.25 4.44 2.50 2.20 1.90 2.00 2.91 4.25 8.00 4.00 3.53 3.24 3.00 2.91 3.00 3.33
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 80% (10 reviews)
a The market price is the price at which the market quantity demanded equals the market quantity sup...View the full answer
Answered By
John Kago
Am a processional practicing accountant with 5 years experience in practice, I also happens to have hands on experience in economic analysis and statistical research for 3 years. am well conversant with Accounting packages, sage, pastel, quick books, hansa world, etc, I have real work experience with Strata, and SPSS
4.70+
31+ Reviews
77+ Question Solved
Related Book For
Question Posted:
Students also viewed these Economics questions
-
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...
-
The Burr Corporation's total cost function (where TC is the total cost in dollars and Q is quantity) is TC = 200 + 4Q + 2Q2 a. If the firm is perfectly competitive and the price of its product is...
-
The market demand schedule for cassettes is as follows: (See below) The market is perfectly competitive, and each firm has the following cost structure: (See below) There are 1000 firms in the...
-
Chuck, a single taxpayer, earns $86,000 in taxable income and $20,000 in interest from an investment in City of Heflin bonds. (Use the U.S. tax rate schedule.) Required: a. If Chuck earns an...
-
Give four methods for determining whether the sample data come from a normal population.
-
Consider the Schmitt trigger in Figure 15.30(a). (a) Derive the expression for the switching point and crossover voltages as given in Equations (15.76) and (15.77). (b) Let \(V_{H}=+12 \mathrm{~V}\)...
-
Units of production overhead rates Garden Phantasy Inc. produces three sizes of garden fountains. Manufacturing overhead totals $90,000. Following are production data; Small Medium Large No of units...
-
For National Co., beginning capital balances on January 1, 2014, are Nancy Payne $20,000 and Ann Dody $18,000. During the year, drawings were Payne $8,000 and Dody $5,000. Net income was $40,000, and...
-
Use the alternative form of the derivative to find the derivative at x = c (if it exists). (If the derivative does not exist at c , enter UNDEFINED.) f ( x ) = x 3 + 4 x 2 + 8, c = 4 f' (4)=
-
You work for ConstCo, a medium-sized engineering and construction company with annual profits of about $100 million. You recently entered as a contractor into a bidding process for a large...
-
The figure shows the costs of Quick Copy, one of many copy shops near campus. If the market price of copying is 10 a page, calculate Quick Copys a. Profit-maximizing output. b. Economic profit. MC...
-
Delta Truss in Cadillac [Michigan] is shutting down and temporarily discontinuing truss production. Workers fear this temporary shutdown will become permanent, but the firm announced that it...
-
To conserve water and energy, a "flow reducer" is installed in the shower head as shown in Fig. P8.52. If the pressure at point (1) remains constant and all losses except for that in the flow reducer...
-
In yellow boxes 1,2,3,4,6,7,13 you must have created excel formulas (see cell 15 for example) In yellow boxes 5,8, 10 & 11 just type in numbers or words 1. $160000 house is purchased with 5% down...
-
Q6 (a) Discuss the continuity of the following function at x=2 x-4 when 0 < x <2 x-2 f(x)=4 when x=2 3x+2 when x> 2 X (b) Find lim 1-0 1+3x-1-3x x
-
Below is given article as required to write explanation for the article (Covid 19- consideration for inventory audit testing) . HERE ATTACHED IS LINK REFERENCE:...
-
Suppose that the following information was available for Sheridan Company at December 31, 2025: beginning inventory $102000; ending inventory $110000; cost of goods sold $820440; and sales $1176000....
-
(1). Discuss the need for religion/spirituality at the end of life AND some potential barriers to religious/spiritual care (2). Thoughtfully contemplate what spiritual or religious needs you might...
-
Evaluate the integral. J1 (x - 1) -dx 2 x
-
Compare and contrast debt financing and equity financing as ways of starting a new business. Does one have an overall advantage over the other? What situation is more favorable to the use of debt...
-
(Monthly accounting cycle) The Bureau of Canine Affairs was established as a part of the Department of Wildlife by an act of Congress and began operations on October 1. Following are the bureau's...
-
What is an indifference curve and how does a preference map show preferences?
-
Calculate Saras real income in terms of smoothies. Calculate her real income in terms of popcorn.
-
What is the effect of the rise in the price of popcorn on the relative price of a smoothie in terms of popcorn? What is the slope of Saras new budget line if it is drawn with smoothies on the x-axis?
-
On January 1 , Year 1 , Prairie Enterprises purchased a parcel of land for $ 1 3 , 2 0 0 cash. At the time of purchase, the company planned to use the land for a warehouse site. In Year 3 , Prairie...
-
Item 1 1 0 0 points Time Remaining 2 hours 5 minutes 0 2 : 0 5 : 0 0 eBookPrintReferencesCheck my workCheck My Work button is now enabled 3 Item 1 Time Remaining 2 hours 5 minutes 0 2 : 0 5 : 0 0...
-
The Adidas Corporation produces athletic apparel. Last month, it produced 6,000 units at a total cost of $45,000. When production increased to 8,000 units, the total cost rose to $56,000. i)...
Study smarter with the SolutionInn App