Question: Each of 10 firms in a given industry has the costs given in this table:

Quantity Total Cost

0 12

1 24

2 27

3 31

4 39

5 53

6 73

7 99

The market demand schedule is given in the table below:

Price Quantity Demanded

2 110

4 100

6 90

8 80

10 70

12 60

14 50

16 40

1. What is the market equilibrium price and the price each firm gets for its product?
2. What is the equilibrium market quantity and the quantity each firm produces?
3. What profit is each firm making?
4. Below what price will firms begin to exit the market?

Price: $2.99

Solution: The downloadable solution consists of 3 pages
Deliverable: Word Document