Question

• Joe's Widget Factory operates in a perfectly competitive industry. Joe's fixed and variable costs are given in the table below. He is a price taker and can sell as many widgets as he produces for $10 each. Complete the table using the provided link and respond to the following questions. Besides referring to your table to support your answers, include references from the course materials on profit-maximizing rules for competitive firms.
• What is the profit maximizing (or loss minimizing) level of output in the short run?
• What is the profit maximizing level of output in the long run?
• What are the shut-down prices in the short run and long run?
• What is the firm's supply curve?

Widgets Fixed Variable Total Avg Variable Avg Total Marginal Price = MR Profits

Produced Costs Costs Costs Costs Costs Cost

0 25 0 25 0 0 10 -15

1 25 8 33 8 33 8 10 -23

2 25 15 40 7.50 20 7 10 -20

3 25 23 45 7.67 16 8 10 -15

4 25 32 57 8.00 14.25 9 10 -17

5 25 42 67 8.40 13.40 10 10 -17

6 25 53 78 8.83 13 11 10 -18

7 25 65 90 9.29 12.86 12 10 -20

8 25 78 103 9.75 12.88 13 10 -23

9 25 92 117 10.22 13 14 10 -27

5) Based on your answers to the previous set of questions, assuming there are 100 identical firms in the widget industry, construct a table showing the industry supply curve. Then, explain what you expect will happen over time to the number of firms in the industry and the equilibrium industry price of widgets.

*******Please verify that I completed the table properly; I was given columns 1-3 and Price=MR, calculated columns 4-7 and 9. Please point me in the right direction on the first line of column 7 I'm so very lost. How do I calculate the first three bullet points above? How would I graph bullet point 4? Do I have make a table for 100 companies using the above data? Multiply it all by 100? How would I graph an industry supply curve?