An industry currently has 100 firms, each of which has fixed costs of $8 and average variable costs as follows: The equilibrium price is currently $15. Each firm produces units, so the total quantity supplied in the market is units. In the long run, firms can enter and exit the market, and all entrants have the same costs as in the previous table. As this market makes the transition to its long-run equilibrium, the price will , quantity demanded will , and the quantity supplied by each firm will .
An industry currently has 100 firms, each of which has fixed costs of $8 and average variable costs as follows: The equilibrium price is currently $15. Each firm produces units, so the total quantity supplied in the market is units. In the long run, firms can enter and exit the market, and all entrants have the same costs as in the previous table. As this market makes the transition to its long-run equilibrium, the price will , quantity demanded will , and the quantity supplied by each firm will .
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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An industry currently has 100 firms, each of which has fixed costs of $8 and average variable costs as follows:
The equilibrium price is currently $15.
Each firm produces
units, so the total quantity supplied in the market is
units.
In the long run, firms can enter and exit the market, and all entrants have the same costs as in the previous table.
As this market makes the transition to its long-run equilibrium, the price will , quantity demanded will , and the quantity supplied by each firm will .
![An industry currently has 100 firms, each of which has fixed costs of $8 and average variable costs as follows:
**Complete the following table by deriving the total cost, marginal cost, and average total cost for each quantity from 1 to 6.**
| Quantity | Average Variable Cost (Dollars) | Total Cost (Dollars) | Marginal Cost (Dollars) | Average Total Cost (Dollars) |
|----------|---------------------------------|----------------------|-------------------------|------------------------------|
| 0 | | 8 | | |
| 1 | 1 | | | |
| 2 | 3 | | | |
| 3 | 5 | | | |
| 4 | 7 | | | |
| 5 | 9 | | | |
| 6 | 11 | | | |
The equilibrium price is currently $15.
Each firm produces [ ] units, so the total quantity supplied in the market is [ ] units.
In the long run, firms can enter and exit the market, and all entrants have the same costs as in the previous table.
As this market makes the transition to its long-run equilibrium, the price will [ \_/ ], quantity demanded will [ \_/ ], and the quantity supplied by each firm will [ \_/ ].](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F12793e8a-e846-4622-8631-84eb79894298%2Fd0e98d45-0053-41cb-866c-0ef8e7e5ac45%2Fuaiqopv_processed.png&w=3840&q=75)
Transcribed Image Text:An industry currently has 100 firms, each of which has fixed costs of $8 and average variable costs as follows:
**Complete the following table by deriving the total cost, marginal cost, and average total cost for each quantity from 1 to 6.**
| Quantity | Average Variable Cost (Dollars) | Total Cost (Dollars) | Marginal Cost (Dollars) | Average Total Cost (Dollars) |
|----------|---------------------------------|----------------------|-------------------------|------------------------------|
| 0 | | 8 | | |
| 1 | 1 | | | |
| 2 | 3 | | | |
| 3 | 5 | | | |
| 4 | 7 | | | |
| 5 | 9 | | | |
| 6 | 11 | | | |
The equilibrium price is currently $15.
Each firm produces [ ] units, so the total quantity supplied in the market is [ ] units.
In the long run, firms can enter and exit the market, and all entrants have the same costs as in the previous table.
As this market makes the transition to its long-run equilibrium, the price will [ \_/ ], quantity demanded will [ \_/ ], and the quantity supplied by each firm will [ \_/ ].
Transcribed Image Text:An industry currently has 100 firms, each of which has fixed costs of $8 and average variable costs as follows:
Complete the following table by deriving the total cost, marginal cost, and average total cost for each quantity from 1 to 6.
| Quantity | Average Variable Cost (Dollars) | Total Cost (Dollars) | Marginal Cost (Dollars) | Average Total Cost (Dollars) |
|----------|--------------------------------|----------------------|------------------------|-----------------------------|
| 0 | | 8 | | |
| 1 | 1 | | | |
| 2 | 3 | | | |
| 3 | 5 | | | |
| 4 | 7 | | | |
| 5 | 9 | | | |
| 6 | 11 | | | |
The equilibrium price is currently $15.
Each firm produces ___ units, so the total quantity supplied in the market is ___ units.
In the long run, firms can enter and exit the market, and all entrants have the same costs as in the previous table.
As this market makes the transition to its long-run equilibrium, the price will ___, quantity demanded will ___, and the quantity supplied by each firm will ___.
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