Use the table below to answer the following question.
Table 11.2.4

-Refer to Table 11.2.4.The market is perfectly competitive and there are 1,000 firms that produce paper. The top table sets out the market demand schedule for paper.
Each producer of paper has the costs shown in the bottom table when it uses its least-cost plant size.
The market price is ________ a box and the market output is ________ boxes.The output produced by each firm is ________ boxes.Each firm ________.

Question

Use the table below to answer the following question.
Table 11.2.4
  
-Refer to Table 11.2.4.The market is perfectly competitive and there are 1,000 firms that produce paper. The top table sets out the market demand schedule for paper.
Each producer of paper has the costs shown in the bottom table when it uses its least-cost plant size.
The market price is ________ a box and the market output is ________ boxes.The output produced by each firm is ________ boxes.Each firm ________.

Quizplus · Accepted Answer

To find the market price, we need to look at the quantity demanded at a market output of 1,000,000 boxes, which is 350 in the table. So the market price is $8.40 a box.
Market output is given as 1,000,000 boxes.
Output produced by each firm when it uses its least-cost plant size is 350 boxes.
Each firm incurs an economic loss of $581 a week because the average total cost is $9.21 and the market price is $8.40, resulting in a loss of $0.81 per box produced. Each firm produces 350 boxes, so the total loss per firm per week is $283.50 ($0.81 x 350).

Use the Table Below to Answer the Following Question