ALL ANSWERS ARE INTEGERS! Consider a firm with the following cost schedule as well as a fixed cost of 32 which is sunk in the short run. Q 1 2 3 4 5 6 7 8 9 10 TVC 20 30 36 44 54 66 80 96 114 134 a. What is the minimum price that would make this firm willing to produce in the short run. (There are two possible answers I will accept here.)? b. If the price is 20, how many will the firm produce in the short run? c. What will the firm's profit be if the price is 20?
ALL ANSWERS ARE INTEGERS!
Consider a firm with the following cost schedule as well as a fixed cost of 32 which is sunk in the short run.
Q 1 2 3 4 5 6 7 8 9 10
TVC 20 30 36 44 54 66 80 96 114 134
a. What is the minimum price that would make this firm willing to produce in the short run. (There are two possible answers I will accept here.)?
b. If the price is 20, how many will the firm produce in the short run?
c. 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
P 6 8 10 12 14 16 18 20
Qd 500 480 460 440 420 400 380 360
d. The supply curve for the market in the long run is perfectly ?
e. In the long run, what will the price be?
f. In the long run, what will the quantity produced by each firm be?
g. In the long run, what will the profit of each firm be?
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