If the market demand for paper remains the same as in Problem 6, ...

[KWilfred]

If the market demand for paper remains the same as in Problem 6, calculate the market price, market output, and the economic profit or loss of each firm.
 
  What will be an ideal response?

Question 2

The distribution of income should be left to the market is an example of a positive economic statement.
 
  Indicate whether the statement is true or false

[sokh]

Answer to Question 1

In the long run, the price equals the minimum average total cost, which is 10.00 a box, the equilibrium industry quantity is 200,000 boxes a week, and each firm makes zero economic profit.

Answer to Question 2

FALSE