Reference no: EM133918480

Problem

POLICY PERSPECTIVES Suppose that the monthly market demand schedule for Frisbees as well as the marginal and average costs of Frisbee production for every competitive firm are given in the following tables. Graph the market demand curve and identify the market equilibrium, graph the firm's cost curves, and then answer five questions about production and profit. Finally, assume that the equilibrium market price is $6 per Frisbee. Monthly Market Demand Schedule for Frisbees Price Quantity Demanded $ 8.00 1,000 7.00 2,000 6.00 4,000 5.00 8,000 4.00 16,000 3.00 32,000 2.00 64,000 Monthly Firm Output, Marginal Cost, and Average Total Cost Rate of Output Marginal Cost Average Total Cost 100 $ 2.00 $ 2.00 200 3.00 2.50 300 4.00 3.00 400 5.00 3.50 500 6.00 4.00 600 7.00 4.50 Graph the market demand curve and identify the equilibrium price and quantity on the left graph. Instructions: In the left graph, use the tool provided 'Demand' to plot the market demand curve (plot 7 points total). Then use the tool provided 'E' to identify the equilibrium price and quantity. Graph the firm's cost curves on the right graph. Instructions: In the right graph, use the tools provided 'MC' and 'ATC' to plot the firm's marginal cost and average total cost curves (plot 6 points for each curve, 12 points total). Get the instant assignment help. Enter your responses as a whole number. How many Frisbees are being sold in equilibrium?