Question 2 The sneakers market is perfectly competitive in Country Y. Table 1 shows the demand...

 

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Question 2 The sneakers market is perfectly competitive in Country Y. Table 1 shows the demand and supply schedule of the sneakers market in Country Y. (a) Price ($) 160 200 240 320 (b) Quantity Demanded (Pairs of sneakers) 300,000 260,000 200,000 150,000 110,000 50,000 Sporty Shoes is one of the firms in the sneakers market in Country Y. Apart from the rent of $10,000, Sporty Shoes has the cost structure as shown in Table 2. 360 400 Table 1 - Demand and supply schedule of the sneakers market in Country Y Quantity (Pairs of sneakers) Quantity Supplied (Pairs of sneakers) 120,000 160,000 200,000 300,000 380,000 450,000 Quantity (Pairs) Total Variable Cost ($) 0 50 100 150 200 250 Table 2-Total variable cost of Sporty Shoes Total Cost ($) 0 6,850 12,800 19,000 31,000 49,000 Construct ONE new table for Sporty Shoes based on the above data. Besides including the original column of quantity, add columns of total cost, average total cost, and marginal cost of Sporty Shoes. Round your answers to integer, if applicable. No working is required. Average Total Cost ($) Marginal Cost ($) (Remarks: Significant mark deduction applies if the table is broken into 2 parts/2 tables or if abbreviation is used for the headings.) (3 marks) Determine the price, profit maximizing output and economic profit (loss) of Sporty Shoes. Explain briefly. (5 marks) Question 2 The sneakers market is perfectly competitive in Country Y. Table 1 shows the demand and supply schedule of the sneakers market in Country Y. (a) Price ($) 160 200 240 320 (b) Quantity Demanded (Pairs of sneakers) 300,000 260,000 200,000 150,000 110,000 50,000 Sporty Shoes is one of the firms in the sneakers market in Country Y. Apart from the rent of $10,000, Sporty Shoes has the cost structure as shown in Table 2. 360 400 Table 1 - Demand and supply schedule of the sneakers market in Country Y Quantity (Pairs of sneakers) Quantity Supplied (Pairs of sneakers) 120,000 160,000 200,000 300,000 380,000 450,000 Quantity (Pairs) Total Variable Cost ($) 0 50 100 150 200 250 Table 2-Total variable cost of Sporty Shoes Total Cost ($) 0 6,850 12,800 19,000 31,000 49,000 Construct ONE new table for Sporty Shoes based on the above data. Besides including the original column of quantity, add columns of total cost, average total cost, and marginal cost of Sporty Shoes. Round your answers to integer, if applicable. No working is required. Average Total Cost ($) Marginal Cost ($) (Remarks: Significant mark deduction applies if the table is broken into 2 parts/2 tables or if abbreviation is used for the headings.) (3 marks) Determine the price, profit maximizing output and economic profit (loss) of Sporty Shoes. Explain briefly. (5 marks)

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SOLUTION STEP 1 EXPLANATION STEP 2 EXPLANATION STEP 3 NB Dollar cost of tota... View the full answer