question archive Assume the following cost data are for a purely competitive producer: Total Product Average Fixed Cost Average VariableCost Average Total Cost Marginal Cost 0 $0
Assume the following cost data are for a purely competitive producer: Total Product Average Fixed Cost Average VariableCost Average Total Cost Marginal Cost 0 $0
Subject:EconomicsPrice:2.85 Bought3
Assume the following cost data are for a purely competitive producer:
| Total Product |
Average Fixed Cost |
Average VariableCost |
Average Total Cost |
Marginal Cost |
| 0 | $0.00 | $0.00 | $0.00 | na |
| 1 | $60.00 | $45.00 | $105.00 | $45.00 |
| 2 | 30.00 | 42.50 | 72.50 | 40.00 |
| 3 | 20.00 | 40.00 | 60.00 | 35.00 |
| 4 | 15.00 | 37.50 | 52.50 | 30.00 |
| 5 | 12.00 | 37.00 | 49.00 | 35.00 |
| 6 | 10.00 | 37.50 | 47.50 | 40.00 |
| 7 | 8.57 | 38.57 | 47.14 | 45.00 |
| 8 | 7.50 | 40.63 | 48.13 | 55.00 |
| 9 | 6.67 | 43.33 | 50.00 | 65.00 |
| 10 | 6.00 | 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: For any negative number, be sure to include a negative sign (-) in front of the number. Round your answers to two decimal places when necessary. Select "Not applicable" and enter a value of "0" for outputif the firm does not produce.
| (a) At a product price of $56.00 |
(b) At a product price of $41.00 |
(c) At a product price of $32.00 |
|
| Will this firm produce in the short run? |
(Click to select)NoYes |
(Click to select)YesNo |
(Click to select)NoYes |
|
If it is preferable to produce, what will be the profit-maximizing or loss-minimizing output? |
(Click to select)Profit-maximizingNot applicableLoss-minimizing |
(Click to select)Loss-minimizingProfit-maximizingNot applicable |
(Click to select)Not applicableLoss-minimizingProfit-maximizing |
| What economic profit or loss will the firm realize per unit of output? |
(Click to select)LossProfitNot applicable |
(Click to select)ProfitNot applicableLoss |
(Click to select)Total profitTotal loss |
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).
Instructions: Enter whole numbers for your answers in the table below. For any negative number, be sure to include a negative sign (-) in front of the number.
| (1) Price |
(2) Quantity Supplied, Single Firm |
(3) Profit or Loss (-) |
(4) Quantity Supplied, 1500 Firms |
| $26.00 | $ | ||
| 32.00 | |||
| 38.00 | |||
| 41.00 | |||
| 46.00 | |||
| 56.00 | |||
| 66.00 |
e. Now assume that there are 1500 identical firms in this competitive industry; that is, there are 1500 firms, each of which has the cost data shown in the table. Complete the industry supply schedule (column 4 in the above table).
f. Suppose the market demand data for the product are as follows:
| Price | Total Quantity Demanded |
| $26.00 | 17000 |
| 32.00 | 15000 |
| 38.00 | 13500 |
| 41.00 | 12000 |
| 46.00 | 10500 |
| 56.00 | 9500 |
| 66.00 | 8000 |
What will be the equilibrium price?$
What will be the equilibrium output for the industry?
For each firm? units
Instructions: Round your answer above to two decimal places.
What will profit or loss be per unit?(Click to select)LossProfit per unit = $
Per firm? $
Will this industry expand or contract in the long run? (Click to select)The industry will expand.The industry will contract.
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