Shawna N.

asked • 12/19/15

The market demand schedule

I am not fulling understanding this question. Does anyone have any suggestions?
Each of 10 firms in a given industry has the costs given in the top table, below. The market demand schedule is given in the bottom table.

Quantity Total Cost
0              12
1              24
2              27
3              31
4              39
5              53
6              73
7              99
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?
Before trying to answer the above, you should determine the market supply schedule. Start with a table marginal costs for the representative firm.

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