Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Assume that the following cost data are for a perfectly competitive producer: Total Product Average Fixed Average Average Total Cost Variable Cost Marginal Cost Cost

image text in transcribedimage text in transcribedimage text in transcribed

image text in transcribedimage text in transcribedimage text in transcribed
Assume that the following cost data are for a perfectly competitive producer: Total Product Average Fixed Average Average Total Cost Variable Cost Marginal Cost Cost 0 na $ 0.00 $ 0.00 na 1 $ 60.00 45.0 $ 105.00 $ 45.00 2 30.00 42.50 $ 72.50 10.00 3 $ 20.00 40.00 $ 60.00 35.00 4 $ 15.00 $ 37.50 $ 52.50 $ 30.00 look $ 12.00 37.00 $ 19.00 $ 35.00 6 10.00 37.50 $ 47.50 $ 40.00 3.57 38.57 17.14 45.00 CA 7.50 $ 10.63 $ 48.13 $ 55.00 $ 6.67 43.33 $ 50.00 $ 65.00 10 5.00 $ 46.50 $ 52.50 $ 75.00 Answer the questions in the first column in the table below for the price listed at the top of each of the other three columns. Instructions: Round your answers to 2 decimal places. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. Select "Not applicable" and enter a value of "O" for output if the firm does not produce. (a) (b ) (c ) At a product price of At a product price of At a product price of $66.00 $41.00 $32.00 Will this firm produce in the Yes short run? Yes (Click to select) v If it is preferable to produce, Profit-maximizin Loss-minimizing v (Click to select) v what will be the profit- maximizing or loss-minimizing output = 9 units output = 6 units output = units output? per firm per firm per firm What economic profit or loss will Profit Profit (Click to select) v the firm realize per unit of output? per unit = $ 153 per unit = $ -33 $ d. In the table below, complete the short-run supply schedule for the firm (columns 1 and 2) and indicate the profit or loss incurred at each output (column 3).d. In the table below, complete the short-run supply schedule for the firm (columns 1 and 2) and indicate the profit or loss incurred at each output (column 3). 2 Instructions: Round your answers to 2 decimal places. If you are entering any negative numbers be sure to include a negative sign (-) points in front of those numbers. (1) (2) (3) (4) Book Price Quantity Supplied, Profit (+) or Loss (-) Quantity Supplied, 1,500 Single Firm Firms $22.00 27.00 32.00 38.0 43.00 17.00 57.00 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: Price Total Quantity Demanded $22.00 9000 27.00 17000 32.00 15000 38.0 13500 43.00 12000 47.00 10500 57.00 9500e. 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 2 data shown in the table. Complete the industry supply schedule (column 4 in the table above). points f. Suppose the market demand data for the product are as follows: Price Total Quantity eBook Demanded $22.00 19000 27.00 17000 32.0 1500 38.00 3500 43.0 12000 47.00 050 57.00 9500 What will be the equilibrium price? $ What will be the equilibrium output for the industry? For each firm? units. Instructions: Round your answers to 2 decimal places. Enter positive values for profit or loss. What will profit or loss be per unit? (Click to select) v per unit = $ Per firm? $ Will this industry expand or contract in the long run? (Click to select) v

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Foundations Of Global Financial Markets And Institutions

Authors: Frank J. Fabozzi, Frank J. Jones, Francesco A. Fabozzi, Steven V. Mann

5th Edition

0262039540, 978-0262039543

More Books

Students also viewed these Economics questions

Question

When should you avoid using exhaust brake select all that apply

Answered: 1 week ago

Question

Pollution

Answered: 1 week ago

Question

The fear of making a fool of oneself

Answered: 1 week ago