The market for smoothies is perfectly competitive. The following table is the market demand schedule for...

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The market for smoothies is perfectly competitive. The following table is the market demand schedule for smoothies. Price (dollars per smoothie) $2.90 $3.00 $3.20 $3.91 $5.25 $5.25 $6.50 Output (smoothies per hour) There are 100 producers of smoothies in this market and of them have the sante cost structure as shown in the table below (essentially, these 100 producers are identical). 3 4 5 6 7 8 9 Quantity Demanded (smoothies per hour) 1000. 950 800 700 550 400 300 $3.50 $3.20 $2.90 $3.00 $3.91 $5.25 $9.00 Marginal Cost (dollars per Average Total Cost (dollars per additional smoothie) smoothie) $6.33 $5.03 $4.24 $3.67 $3.34 $3.25 $3.44 Respond to the questions below based on the information provided above: [Show your work/thought process clearly] a. What is the equilibrium market price of a smoothie? b. What is the equilibrium market quantity of smoothies? c. How many smoothies does each firm sell? d. What is the profit earned (or loss incurred) by each firm at this profit maximizing level of production? The market for smoothies is perfectly competitive. The following table is the market demand schedule for smoothies. Price (dollars per smoothie) $2.90 $3.00 $3.20 $3.91 $5.25 $5.25 $6.50 Output (smoothies per hour) There are 100 producers of smoothies in this market and of them have the sante cost structure as shown in the table below (essentially, these 100 producers are identical). 3 4 5 6 7 8 9 Quantity Demanded (smoothies per hour) 1000. 950 800 700 550 400 300 $3.50 $3.20 $2.90 $3.00 $3.91 $5.25 $9.00 Marginal Cost (dollars per Average Total Cost (dollars per additional smoothie) smoothie) $6.33 $5.03 $4.24 $3.67 $3.34 $3.25 $3.44 Respond to the questions below based on the information provided above: [Show your work/thought process clearly] a. What is the equilibrium market price of a smoothie? b. What is the equilibrium market quantity of smoothies? c. How many smoothies does each firm sell? d. What is the profit earned (or loss incurred) by each firm at this profit maximizing level of production?

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Under a perfect competition market marginal revenue is equal to marginal cost which is equal to the price level for each firm MR MC P The marginal cos... View the full answer