Assume that the cost data in the following table are for a purely competitive producer: Total Average Average Average Marginal Product Fixed Cost Variable Cost Total Cost Cost $ 60.00 $ 45.00 s 105.00 $ 45.00 30.00 42.50 72.50 40.00 20.00 40.00 60.00 35.00 15.00 37.50 52.50 30.00 12.00 37.00 49.00 35.00 10.00 37.50 47.50 40.00 8.57 38.57 47.14 7.50 40.63 48.13 6.67 43.33 50.00 46.50 52.50 55.00 ._. O 75.00 Instructions: If you are entering any negative numbers be sure to include a negative sign H in front of those numbers. Select "Not applicable" and enter a value of "O" for output if the firm does not produce. a. At a product price of $56.00 (i) Will this firm produce in the short run? 0 (ii) If it is preferable to produce, what will be the protmaximizing or lossminimizing output? Profitmaximizing 0 output = 8 0 units per firm (iii) What economic profit or loss will the firm realize per unit of output? Prot 0 per unit = $ 7.87 0 b. At a product price of $41.00 (i) Will this firm produce in the short run? 0 (ii) If it is preferable to produce, what will be the protmaximizing or lossminimizing output? 0 output = El 0 units per firm (iii) What economic profit or loss will the firm realize per unit of output? Loss 0 per unit = $ 6.50 o c. At a product price of $32.00 (i) Will this firm produce in the short run? 0 (ii) If it is preferable to produce, what will be the protmaximizing or lossminimizing output? Not applicable 0 output = O 0 units per rm (iii) What economic profit or loss will the firm realize per unit of output? Total loss 0 per unit = $ 0 Instructions: Enter your answers as a whole number. If you are entering any negative numbers be sure to include a negative sign () in front of those numbers. d. In the table below, complete the shortrun supply schedule for the firm (columns 1 and 2) and indicate the profit or loss incurred at each output (column 3). 6 Answer is complete but not entirely correct. (2) Quantity . (4) Quantity (1) Price Supplied, (:1 Egg) Supplied, 1,500 Single Firm Firms $26.00 0.00 9 0.00 9 0.00 9 32.00 0.00 9 0.00 6 0.00 9 38.00 5.00 0 49.00 9 -55.00 9 41.00 6.00 9 47.50 0 39.00 6 46.00 7.00 9 47.14 9 8.00 9 56.00 8.00 O 48.13 9 63.00 9 66.00 9.00 9 50.00 6 144.00 6 e. Now assume that there are 1,500 identical firms in this competitive industry. That is, there are 1,500 firms, each of which has the cost data shown in the table. Complete the industry supply schedule (column 4 in the table above). e. Now assume that there are 1,500 identical firms in this competitive industry. That is, there are 1,500 firms, each of which has the cost data shown in the table. Complete the industry supply schedule (column 4 in the table above). f. Suppose the market demand data for the product are as follows: Total Quality Demanded $ 26.00 17,000 32.00 15,000 38.00 13,500 What is the equilibrium price? $ 46 o What is the equilibrium output for the industry? 10,500 0 units For each firm? 7 0 units Instructions: Enter your answers rounded to two decimal places. Enter positive values for profit or loss. What will profit or loss be per unit? Loss 0 per unit = $ 1.14 O Perfirm? $ 0 T. Suppose the market demand data for the product are as follows: Total Quality Price Demanded $ 26.00 17, 000 32. 00 15 , 000 38 .00 13, 500 41 .00 12, 000 46 .00 10 , 500 56 .00 9 , 500 66 . 00 8 , 000 What is the equilibrium price? $ 46 What is the equilibrium output for the industry? 10,500 units For each firm? 7 units Instructions: Enter your answers rounded to two decimal places. Enter positive values for profit or loss. What will profit or loss be per unit? Loss per unit = $ 1.14 Per firm? $ 7.98 Will this industry expand or contract in the long run? Contract V