The market for smoothies is perfectly competitive and the market demand schedule is in the first table.

Each of the 100 producers of smoothies has the costs given in the second table when it uses its least-cost plant.

a. What is the market price of a smoothie?
b. What is the market quantity of smoothies?
c. How many smoothies does each firm sell?
d. What is the economic profit made or economic loss incurred by each firm?

Transcribed Image Text:

Price (dollars per smoothie) 1.90 2.00 2.20 2.91 4.25 5.25 5.50 Quantity demanded smoothies per hour) 1,000 950 800 700 550 400 300 Average variable cost Average total cost Outpu Marginal cost (smoothies dollars per per hour) additional smoothie)(dollars per smoothie) 7.33 6.03 5.24 4.67 4.34 4.25 4.44 2.50 2.20 1.90 2.00 2.91 4.25 8.00 4.00 3.53 3.24 3.00 2.91 3.00 3.33