# SavedSuppose that the monthly market demand schedule for Frisbees is listed below:Price\$8\$7\$6\$5\$4\$3\$2Quantity demanded1,0002,0004,0008,000 16,000 32,000 64,000Suppose further that the marginal and average costs of Frisbee production for every competRate of output600\$7.00100200300400500Marginal costAverage total cost242.00 \$3.00\$2.00 \$2.50 \$3.00 \$3.50\$6.00\$4.00 \$4.5O\$4.00 \$5.00Finally, assume that the equilibrium market price is \$6 per Frisbee.(a) Identify this firm's profit-maximizing rate of output.Instructions: Enter your response as a whole number.500 units of output(b) Draw the market demand curve.< Prev8 of 9Next >DELL%24%24%24%24

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How many (identical)firms are initially producing Frisbees?

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Step 1

Equilibrium market price = \$6 per Frisbees.

When firms are identical, the level of output will be determined where Marginal cos...

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