Consider a firm with the following cost schedule as well as a fixed cost of 32 which is sunk in the short run.

Quantity: 1, 2, 3, 4, 5, 6, 7, 8, 9, 10

Total Value Cost:20, 30, 36, 44, 54, 66, 80,96, 114, 134

1. What is the minimum price that would make this firm willing to produce in the short run?
2. If the price is 20, how many will the firm produce in the short run?
3. What will the firm's profit be if the price is 20?

Now let the demand for this good be given by the following schedule and assume that this is a perfectly competitive market with identical firms and free entry/exit.

Price: 6, 8, 10, 12, 14, 16, 18, 20

Quantity demanded: 500, 480, 460, 440, 420, 400, 380, 360

4. The supply curve for the market in the long run is perfectly .

5. In the long run, what will the price be?

6. In the long run, what will the quantity produced by each firm be?

7. In the long run, what will the profit of each firm be?