Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Below is a data of the per-unit costs incurred by a competitor in selling face mask per pack (5 masks per pack) per day. Output

image text in transcribed
Below is a data of the per-unit costs incurred by a competitor in selling face mask per pack (5 masks per pack) per day. Output [in packs) AFC (P) AVC (P) ATC (P) MIC (P) - 60.00 45.00 105.00 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 45.00 8 7.50 40.63 48.13 65.00 6.67 43.33 50.00 65.00 10 6.00 46.50 52.50 75.00 1. Assuming that the product's price is P58 per pack, should the competitorsell in the short-run? Why orwhy not? If it decides to sell, what will be the profit-maximting (or loss-minimbing output perday)? What is the profit (or loss) that the seller can realize per day? What is the profit (or loss) per pack? A. Assuming that the product price is P42 per pack, answer the same questions in letter A. B. Because of increasing sellers of masks in the market, the product's price further decreased to $82 per pack. Again, answer the same questions in letter A. C. When is this seller going to shut down? D. Now generate the seller's supply curve of mask in the short run

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

The Economy Of Cities

Authors: Jane Jacobs

1st Edition

039470584X, 9780394705842

More Books

Students also viewed these Economics questions

Question

4. Think of analogies that will make ideas easier to understand.

Answered: 1 week ago