Matthew Rafferty

4.5 Matthew Rafferty produces hiking boots in the perfectly competitive hiking boot market.

a. Fill in the missing values in the following table:

b. Suppose the equilibrium price in the hiking boot market is $100. How many boots should Rafferty produce, what price should he charge, and how much profit will he make?

c. If next week the equilibrium price of boots drops to $65, how many boots should Rafferty produce, what price should he charge, and how much profit (or loss) will he make?

d.    If the equilibrium price of boots falls to $50, how many boots should Rafferty produce, what price should he charge, and how much profit (or loss) will he make?