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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Asked Mar 24, 2020
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How many (identical)firms are initially producing Frisbees?

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Suppose that the monthly market demand schedule for Frisbees is listed below:
Price
$8
$7
$6
$5
$4
$3
$2
Quantity demanded
1,000
2,000
4,000
8,000 16,000 32,000 64,000
Suppose further that the marginal and average costs of Frisbee production for every compet
Rate of output
600
$7.00
100
200
300
400
500
Marginal cost
Average total cost
242.00 $3.00
$2.00 $2.50 $3.00 $3.50
$6.00
$4.00 $4.5O
$4.00 $5.00
Finally, 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.
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Saved Suppose that the monthly market demand schedule for Frisbees is listed below: Price $8 $7 $6 $5 $4 $3 $2 Quantity demanded 1,000 2,000 4,000 8,000 16,000 32,000 64,000 Suppose further that the marginal and average costs of Frisbee production for every compet Rate of output 600 $7.00 100 200 300 400 500 Marginal cost Average total cost 242.00 $3.00 $2.00 $2.50 $3.00 $3.50 $6.00 $4.00 $4.5O $4.00 $5.00 Finally, 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. < Prev 8 of 9 Next > DELL %24 %24 %24 %24

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Equilibrium market price = $6 per Frisbees.

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

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