Answer to Question #283687 in Microeconomics for aina

Question

Quantity Demanded 1200 1100 1000 900 800 700 600 500 400 300 200 100 0

a. Compute each seller’s total cost and average total cost for selling 1 to 6 durians.

b. The price of a durian is now RM11. How many durians are sold in the market?

c. How many durians does each seller sell and how much profit does he earn?

d. How many sellers are there in the market?

e. Is the situation described in above a long-run equilibrium? Explain why?

f. Suppose that in the long run there is free entry and exit. How much profit does each seller earn in the long run equilibrium?

g. What is the market price and number of durians each seller sells? How many durians are sold? How many durians’ sellers are operating in the market?

Each seller in the market has fixed costs of RM9 and the following marginal cost:

Quantity Marginal Cost (MC) (RM)

1 2

2 4

3 6

4 8

5 10

6 12

Answer 1

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