The table below shows market demand for lunches for people taking all day rafting trips on...
The table below shows market demand for lunches for people taking all day rafting trips on the river. Georgios has a firm providing this service, and his marginal cost and the average cost for each lunch are a constant $4.
Table Lunch (Price, Quantity Demanded)
$10, 0
$9, 10
$8, 20
$7, 30
$6, 40
$5, 50
$4, 60
1) if Georgios is one of many firms in a competitive industry, how many lunches will the market produce in the market run?
2) what is producer surplus in this market in the long run?
3) what price will he charge for lunch in the long run?
4)what is consumer surplus in this market in the long run?
5) what are 4 techniques a monopolist can use to price discriminate?
Homework Answers
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