I could know solve this question. d. Fill in the blanks: From the market supply and demandschedules in c., the equilibrium market price for this goodisLand the equilibrium market quantity isfirm will produce a quantity of.(profit/loss) equal to.e. In d., your answers characterize the short-run equilibriumin this market. Do they characterize the long-run equilib-rium as well? If so, explain why. If not, explain why not(that is, what would happen in the long run to change theequilibrium and why?)._. Eachand earn a 3.4 The following problem traces the relationship betweenfirm decisions, market supply, and market equilibrium ina perfectly competitive market.a. Complete the following table for a single firm in the shortrun.OUTPUTTFCTVCTCAVCАТСMC$150$140100318042805400656077601,0001,3001,8508910b. Using the information in the table, fill in the following sup-ply schedule for this individual firm under perfect competi-tion and indicate profit (positive or negative) at each outputlevel. (Hint: At each hypothetical price, what is the MR ofproducing 1 more unit of output? Combine this with theMC of another unit to figure out the quantity supplied.)QuantitySuppliedPriceProfit$ 4070110140180220260400c. Now suppose there are 100 firms in this industry, all withidentical cost schedules. Fill in the market quantity sup-plied at each price in this market.Market QuantitySuppliedMarket QuantityDemandedPrice$ 401,7001,500701101,3001401,100180900220700260500400300

In economics, there are two critical concepts that firms use to make decisions regarding pricing,…

3.4 The following problem traces the relationship between firm decisions, market supply, and market equilibrium in a perfectly competitive market. a. Complete the following table for a single firm in the short run. OUTPUT TFC TVC TC AVC ATC MC 0 $150 $ 0 1 40 2 100 3 180 4 280 5 400 6 560 7 760 8 1,000 9 1,300 10 1,850 b. Using the information in the table, fill in the following sup- ply schedule for this individual firm under perfect competi tion and indicate profit (positive or negative) at each outpu level. (Hint: At each hypothetical price, what is the MR of producing 1 more unit of output? Combine this with the MC of another unit to figure out the quantity supplied.) Price $ 40 70 110 140 180 220 260 400 Quantity Supplied Profit c. Now suppose there are 100 firms in this industry, all with identical cost schedules. Fill in the market quantity sup- plied at each price in this market. Price $ 40 Market Quantity Supplied Market Quantity Demanded $70 110 140 180 220 260 400 וווווווד 1,700 1,500 1,300 1,100 900 700 500 300

3.4 The following problem traces the relationship between firm decisions, market supply, and market equilibrium in a perfectly competitive market. a. Complete the following table for a single firm in the short run. OUTPUT TFC TVC TC AVC ATC MC 0 $150 $ 0 1 40 2 100 3 180 4 280 5 400 6 560 7 760 8 1,000 9 1,300 10 1,850 b. Using the information in the table, fill in the following sup- ply schedule for this individual firm under perfect competi tion and indicate profit (positive or negative) at each outpu level. (Hint: At each hypothetical price, what is the MR of producing 1 more unit of output? Combine this with the MC of another unit to figure out the quantity supplied.) Price $ 40 70 110 140 180 220 260 400 Quantity Supplied Profit c. Now suppose there are 100 firms in this industry, all with identical cost schedules. Fill in the market quantity sup- plied at each price in this market. Price $ 40 Market Quantity Supplied Market Quantity Demanded $70 110 140 180 220 260 400 וווווווד 1,700 1,500 1,300 1,100 900 700 500 300

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter13: Firms In Competitive Markets

Section: Chapter Questions

Problem 8PA

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Similar questions

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