In Problem 5 , new technology decreases the demand for paper. The following table sets out the new demand schedule for paper.

If firms have the same costs set out in Problem 5 , what is the market price and the firm’s economic profit or loss in the short run?

Problem 5

The market for paper is perfectly competitive and 1,000 firms produce paper. The table sets out the market demand schedule for paper.The table in the next column sets out the costs of each producer of paper.
Calculate the market price, the market output, the quantity produced by each firm, and the firm’s economic profit or loss.

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Price (dollars per box) 2.95 4.13 5.30 6.48 7.65 8.83 10.00 11.18 Quantity demanded (thousands of boxes per week) 500 450 400 350 300 250 200 150