Question

Score: 0 of 1 pt 6 of 20 (5 complete) HW Score: 20% Question 11.2 Study Plan Problem 5 (static) ine market for paper is perfecuy competive and there are 1,000 ms that produce paper. The top table sets out the market demand schedule for paper. The bottom table sets out the costs of each producer of paper. Calculate the market price, the market output, the quantity produced by each firm, and the firm's economic profit or loss. The market price is $a box and the output produced by each limis boxes 8.40 10.00 11.60 13.20 350 300 250 200 7.00 Quantity Marginal cost (boxes per (dollars per week) additional box) 200 6.40 250 300 7.65 350 8.40 400 10.00 450 12.40 500 20.70 Average Average variable cost total cost (dollars per box) 7.80 12.80 7.00 11.00 7.10 10.43 7.20 10.06 7.50 10.00 8.00 10.22 9.00 11.00 Enter your answer in the edit fields art than in Chan

Answer 1

Ans.

The market price will be $8.40

because its where demand = supply , Quantity damanded(350) = Output(350),

Hence at that price the Quanitity demanded is 350.(in thousands)

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