3.3 Frances sells pencils in the perfectly competitive pencil market. Her output per day and hercosts are as follows:Variable CostOutput perDayTotal CostАТСAVCMC$1.002.50123.5034.2044.505.206.6.8078.708.10.70a. If the current equilibrium price in the pencil market is $1.80, how many pencils will Francesproduce, what price will she charge, and how much profit (or loss) will she make? (1)

* Total cost = Fixed cost + variable cost * AverageTotal Cost = TCQ* Average variable cost =…

3.3 Frances sells pencils in the perfectly competitive pencil market. Her output per day and her costs are as follows: Output per Day Total Cost Variable Cost АТС AVC MC $1.00 1 2.50 3.50 3 4.20 4 4.50 5 5.20 6. 6.80 7 8.70 8. 10.70 a. If the current equilibrium price in the pencil market is $1.80, how many pencils will Frances

3.3 Frances sells pencils in the perfectly competitive pencil market. Her output per day and her costs are as follows: Output per Day Total Cost Variable Cost АТС AVC MC $1.00 1 2.50 3.50 3 4.20 4 4.50 5 5.20 6. 6.80 7 8.70 8. 10.70 a. If the current equilibrium price in the pencil market is $1.80, how many pencils will Frances

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter8: Perfect Competition

Section: Chapter Questions

Problem 7SCQ: If new technology in a perfectly competitive market brings about a substantial reduction in costs of...

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