Question: Suppose the following data describe the demand for fruit smoothies: Price Quantity demanded $11 $10 7 10 Quantity produced Total cost 0 1 $5

Suppose the following data describe the demand for frult smoothies: Five identical, perfectly competitive firms are producing

Suppose the following data describe the demand for fruit smoothies: Price Quantity demanded $11 $10 7 10 Quantity produced Total cost 0 1 $5 $8 $10 19 $9 13 2 Five identical, perfectly competitive firms are producing these smoothies. The cost of producing these smoothles at each firm is the following: $8 $7 $8 16 19 22 28 Instructions: Enter your responses as a whole number. a. What price will prevall in this market? $5 25 b. What quantity is produced? 25 smoothles c. How much profit (loss) does each firm make? per firm $4 $3 28 31 3 4 5 6 7 8 $13 $17 $22 528 $36 $45 d. What happens to price if two more identical firms enter the market? Price falls to $ $2 34 9 $55 10 $67

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