Updated Chapter

9. Problems and Applications Q.9

Quantity	Total cost	Average total cost
1	7	7
2	10	5
3	18	6
4	28	7
5	40	8
6	54	6

At a price of $11, 200 pies are sold in the market. Each producer makes 4 pie, so there are 50 producers in the market, each making profit of $16

The market is in equilibrium: False

In the long run each producer earns a profit of $0, The market price $5. At this price, 800 pies are sold in the market each producer makes 2 pies. So there are 400 producers operating