Quantity Fixed Costs Variable Costs Total Cost Marginal Cost 10 200 50 250 *********** 20 200 100 300 5 30 200 300 500 20 40 200 800 1000 X (A) If the equilibrium price is $20, find the profit-maximizing quantity.  (B) How much profit will the firm earn?  (C) Find the marginal cost as X.

Attempts 8. Problems and Applications Q The market for apple pies in the city of Ectenis is competitive and has the following demand schedule: Price (Dollars) 1 2 3 7 8 Demand Schedule 9 10 11 12 13 Quantity Demanded Average: 14 (Pies) 1.200 1,100 1,000 900 800 (Dollars) 2 9 Each producer in the market has a fixed cost of $5 and the following marginal cost Quantity Marginal Cost (Pies) 1 2 3 4 5 11 13 15 700 600 500 400 300 200 100 0

(a) Complete the table.(b) Identify the equilibrium output and price.(c) How much profits does the firm earn at equilibrium output?(d) Is the firm operating in a perfect or imperfect market and is the? firm earning supernormal profit, subnormal profit or normal profit

5. El Sol Inc. produces beach towels. The cost of each towel is $ 4.00 and it sells for $ 10.00 after the markup on its cost. Similar towels sell for $ 8.00. How much should each towel cost you to be able to adjust to the market price and keep your profit margin?