Answer the letters (C) and (D) only. Data table is also provided (refer to the photo below). 1. Assuming that the product’s price is P58 per pack, should the competitor sell in the short-run? Why or why not? If it decides to sell, what will be the profit-maximizing (or loss-minimizing output per day)? What is the profit (or loss) that the seller can realize per day? What is the profit or loss) per pack? C. What is this seller going to shut down? D. Now generate the seller’s supply curve of mask in the short run.
Answer the letters (C) and (D) only. Data table is also provided (refer to the photo below). 1. Assuming that the product’s price is P58 per pack, should the competitor sell in the short-run? Why or why not? If it decides to sell, what will be the profit-maximizing (or loss-minimizing output per day)? What is the profit (or loss) that the seller can realize per day? What is the profit or loss) per pack? C. What is this seller going to shut down? D. Now generate the seller’s supply curve of mask in the short run.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Instructions: Answer the letters (C) and (D) only. Data table is also provided (refer to the photo below).
1. Assuming that the product’s price is P58 per pack, should the competitor sell in the short-run? Why or why not? If it decides to sell, what will be the profit-maximizing (or loss-minimizing output per day)? What is the profit (or loss) that the seller can realize per day? What is the profit or loss) per pack?
C. What is this seller going to shut down?
D. Now generate the seller’s supply curve of mask in the short run.
![I.
PROBLEM SOLVING
Below is a data of the per-unit costs incurred by a competitor in selling face mask per pack (5
masks per pack) per day.
Output (in packs)
AFC (Php)
AVC (Php)
ATC (Php)
MC (Php)
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
7.50
40.63
48.13
55.00
6.67
43.33
50.00
65.00
10
6.00
46.50
52.50
75.00](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F657dc377-27af-44b3-b809-d01769fc21d5%2F715672de-aca8-4153-897c-b8beba12da3c%2Fnaf8gxc_processed.png&w=3840&q=75)
Transcribed Image Text:I.
PROBLEM SOLVING
Below is a data of the per-unit costs incurred by a competitor in selling face mask per pack (5
masks per pack) per day.
Output (in packs)
AFC (Php)
AVC (Php)
ATC (Php)
MC (Php)
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
7.50
40.63
48.13
55.00
6.67
43.33
50.00
65.00
10
6.00
46.50
52.50
75.00
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