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
