Jan's bakery is considering a merger with tina's cookies. jan's total operating costs of producing services are $300,000 for a sales volume of $2 million. tina's total operating costs of producing services are $75,000 for a sales volume of $600,000. if the two firms merge, calculate the total average cost for the merged firm assuming no synergies.

Martha is one producer in the perfectly competitive jelly industry. last year, martha and all of her competitors found themselves earning economic profits. if there is free entry and exit, what do you expect to happen to the number of suppliers in the industry and the price of jelly? the number of suppliers will increase, and the price of jelly will fall. the number of suppliers will decrease, and the price of jelly will increase. the number of suppliers will increase, and the price of jelly will increase. the number of suppliers will decrease, and the price of jelly will fall.