2 The Competitive Equilibrium Model Deriving Supply Negar Owns A Trendy And Sustainable Shoe Factory The Total Cost 1 (122.52 KiB) Viewed 13 times
c. Suppose the wholesale market for shoes that sell to retailstores is competitive, with a marketprice of $10 per pair (i.e., $100 per 10 pairs). If Negar’s goal isto maximize profits, how manypairs will she choose to sell?
d. What are Negar’s profits when she sells the number of pairs from(c) at the market price of$10?
e. Calculate Negar’s producer surplus given the price and quantityfrom part (c). How does thiscompare to the profit calculated in part (d)? Briefly explain youranswer.
2. [The Competitive Equilibrium Model-Deriving Supply] Negar owns a trendy and sustainable shoe factory. The total cost of producing a given number of pairs of shoes is displayed in the table below. Assume Negar can only produce the integer quantities of pairs of shoes specified in the table. Number of pairs 0 10 20 30 40 50 60 70 Total Cost 400 410 430 460 500 580 680 800
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