ALL ANSWERS ARE INTEGERS! [I think we probably won't get to everything in this question this week so you will probably need to look carefully at the part of the chapter about industry supply curves. Figure 11.8 is particularly relevant here.] 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 18, how many will the firm produce in the short run? c. What will the firm's profit be if the price is 18? Now let the demand for this good be given by the following schedule and assume that this is a perfectly competitive market with free entry/exit. P 6 8 10 12 14 16 18 20 QS 420 400 380 360 340 320 300 280 c. In the long run, what will the price be? d. How many firms will there be? e. What will the profit of each firm be? f. The supply curve in the long run is perfectly ...
ALL ANSWERS ARE INTEGERS!
[I think we probably won't get to everything in this question this week so you will probably need to look carefully at the part of the chapter about industry supply curves. Figure 11.8 is particularly relevant here.]
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
b. If the price is 18, how many will the firm produce in the short run?
c. What will the firm's profit be if the price is 18?
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
QS 420 400 380 360 340 320 300 280
c. In the long run, what will the price be?
d. How many firms will there be?
e. What will the profit of each firm be?
f. The supply curve in the long run is perfectly ...
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
