Consider the market for a iced coffees. Each shop can make at most one drink. For shop A the marginal cost of making the coffee is $1.25, for shop B, it is $2.10, for shop C it is $3.00 and finally, for shop D it is $2.50. If the market price is P = $2.75 a. what is the quantity supplied? b. what is the total producer surplus?
Consider the market for a iced coffees. Each shop can make at most one drink. For shop A the marginal cost of making the coffee is $1.25, for shop B, it is $2.10, for shop C it is $3.00 and finally, for shop D it is $2.50. If the market price is P = $2.75 a. what is the quantity supplied? b. what is the total producer surplus?
Chapter24: Perfect Competition
Section: Chapter Questions
Problem 10E
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Consider the market for a iced coffees. Each shop can make at most one drink. For shop A the marginal cost of making the coffee is $1.25, for shop B, it is $2.10, for shop C it is $3.00 and finally, for shop D it is $2.50. If the market price is P = $2.75
a. what is the quantity supplied?
b. what is the total
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