The market for apple pies in the city of Ectenia is competitive and has the following...

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Economics

The market for apple pies in the city of Ectenia is competitiveand has the following demand schedule:
Demand Schedule
Price
Quantity Demanded
(Dollars)
(Pies)
1 1,200
2 1,100
3 1,000
4 900
5 800
6 700
7 600
8 500
9 400
10 300
11 200
12 100
13 0
Each producer in the market has a fixed cost of $6 and thefollowing marginal cost:
Quantity
Marginal Cost
(Pies)
(Dollars)
1 1
2 3
3 8
4 10
5 12
6 14
Complete the following table by computing the total cost andaverage total cost for each quantity produced.
Quantity
Total Cost
Average Total Cost
(Pies)
(Dollars)
(Dollars)
1
2
3
4
5
6
The price of a pie is now $11.
At a price of $11, pies are sold in the market. Each producermakespies, so there areproducers in this market, each making aprofit of
.
True or False: The market is in long-run equilibrium.
True
False
Suppose that in the long run there is free entry and exit.
In the long run, each producer earns a profit of. The market priceis. At this price, pies are sold in this market, and each producermakespies, so there are
producers operating.

Price	Quantity Demanded
1	1,200
2	1,100
3	1,000
4	900
5	800
6	700
7	600
8	500
9	400
10	300
11	200
12	100
13	0

Quantity	Marginal Cost
1	1
2	3
3	8
4	10
5	12
6	14

Answer & Explanation Solved by verified expert

4.1 Ratings (830 Votes)

Quantity Pies Total cost Dollars FC summation of MC Average total cost Dollars TCQ 1 617 7 2 7310 5 3 10818 6 4 1810 28 7 5 2812 40 8 6 4014 54 9 The price is 11 At a price of 11 200 See Answer

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Price	Quantity Demanded
(Dollars)	(Pies)
1	1,200
2	1,100
3	1,000
4	900
5	800
6	700
7	600
8	500
9	400
10	300
11	200
12	100
13	0