Eeriect Competition Assignment 1. Use the following demand schedule to determine total revenue and marginal revenue for each possible level of sales: table below: Product Quantlty Total Marginal Prlce Demanded Revenue Revenue $2 0 $. 2 l $ 2 2 2 3 2 4 2 5 a. What can you conclude about the structure of the industry in which this firm is operating? Explain use examples. b. Graph the demand, total-revenue, and marginal-revenue curves for this firm c. Why do the demand and marginal-revenue curves coincide? d. \"Marginal revenue is the change in total revenue associated with additional units of output." Explain verbally and graphically, using the data in the table. 2.Assume the following cost data are for a purely competitive producer: See cost table below: Total Average Average Avenue Mush\" Product FhodCost VnrhbloCost romeo: Cost 0 I $60.m $45.00 $ l 05.00 5:; 2 30.00 42.50 72.50 35 3 20.00 40.00 60.00 4 I 5.00 37.50 52.50 :2 5 I 200 37.00 49.00 40 6 l0.00 37.50 47.50 7 &57 38.57 47. I4 2: 8 7.50 40.63 48. l 3 65 9 6.67 43.33 50.00 ID 600 46.50 52.50 75 a. At a product price of $66, will this firm produce in the short run? If it is preferable to produce, what will be the profit-maximizing or loss-minimizing output? What economic profit or loss will the firm realize per unit of output. b. Answer the questions of 2a assuming product price is $46. Explain in detail. c. Answer the questions of 2a assuming product price is $38. Explain in detail. 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) L (2) (4) Quantity (3) Quantity (1) Supplied, Profit (+) Supplied Price Single Firm or Loss (-) 1500 Firms $26 $. 32 38 41 46 56 66 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). f. Suppose the market demand data for the product are as follows: table in textbookTotal Quantity P rice Demanded $26 I7,000 32 |5,000 38 I3,500 4| |2,000 46 |0,500 56 9500 66 8000 What will be the equilibrium price? What will be the equilibrium output for the industry? For each firm? What will profit or loss be per unit? Per firm? Will this industry expand or contract in the long run