Assume that the cost data in the following table are for a purely competitive producer: Average Average Average Total Total Fixed Variable Marginal Product Cost Cost Cost Cost 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 8 7.50 40.63 48.13 55.00 9. 6.67 43.33 50.00 65.00 10 6.00 46.50 52.50 75.00 Instructions: If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. Select "Not applicable" and enter a value of "0" for output if the firm does not produce. a. At a product price of $66.00 (i) Will this firm produce in the short run? Yes (ii) If it is preferable to produce, what will be the profit-maximizing or loss-minimizing output? Profit-maximizing O output = 9. units per firm (iii) What economic profit or loss will the firm realize per unit of output? Profit per unit = $ 16 b. At a product price of $41.00 (i) Will this firm produce in the short run? Yes (ii) If it is preferable to produce, what will be the profit-maximizing or loss-minimizing output? Loss-minimizing O output = 2 * units per firm (iii) What economic profit or loss will the firm realize per unit of output? Los per unit = $ 6.50 8 c. At a product price of $32.00 (i) Will this firm produce in the short run? No (ii) If it is preferable to produce, what will be the profit-maximizing or loss-minimizing output? Not applicable O output = 0 O units per firm (iii) What economic profit or loss will the firm realize per unit of output? Total loss per unit = $ |-22.50 Instructions: Enter your answers as a whole number. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. d. In the table below, complete the short-run supply schedule for the firm (columns 1 and 2) and indicate the profit or loss incurred at each output (column 3).
Assume that the cost data in the following table are for a purely competitive producer: Average Average Average Total Total Fixed Variable Marginal Product Cost Cost Cost Cost 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 8 7.50 40.63 48.13 55.00 9. 6.67 43.33 50.00 65.00 10 6.00 46.50 52.50 75.00 Instructions: If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. Select "Not applicable" and enter a value of "0" for output if the firm does not produce. a. At a product price of $66.00 (i) Will this firm produce in the short run? Yes (ii) If it is preferable to produce, what will be the profit-maximizing or loss-minimizing output? Profit-maximizing O output = 9. units per firm (iii) What economic profit or loss will the firm realize per unit of output? Profit per unit = $ 16 b. At a product price of $41.00 (i) Will this firm produce in the short run? Yes (ii) If it is preferable to produce, what will be the profit-maximizing or loss-minimizing output? Loss-minimizing O output = 2 * units per firm (iii) What economic profit or loss will the firm realize per unit of output? Los per unit = $ 6.50 8 c. At a product price of $32.00 (i) Will this firm produce in the short run? No (ii) If it is preferable to produce, what will be the profit-maximizing or loss-minimizing output? Not applicable O output = 0 O units per firm (iii) What economic profit or loss will the firm realize per unit of output? Total loss per unit = $ |-22.50 Instructions: Enter your answers as a whole number. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. d. In the table below, complete the short-run supply schedule for the firm (columns 1 and 2) and indicate the profit or loss incurred at each output (column 3).
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:(1)
(2)
(3)
(4)
Quantity
Supplied,
Single Firm
Profit (+) or
Loss (-)
Quantity Supplied,
1,500 Firms
Price
$22.00
27.00
32.00
38.00
43.00
47.00
57.00
e. Now assume that there are 1,500 identical firms in this competitive industry. That is, the
data shown in the table. Complete the industry supply schedule (column 4 in the table above).
are 1.
firms, each of which has
cost
f. Suppose the market demand data for the product are as follows:
Total
Quality
Price
Demanded
$22.00
19,000
27.00
17,000
32.00
15,000
38.00
13,500
43.00
12,000
47.00
10,500
57.00
9,500
What is the equilibrium price? $
What is the equilibrium output for the industry?
units
For each firm?
units
Instructions: Enter your answers rounded to two decimal places. Enter positive values for profit or loss.
What will profit or loss be per unit?
Loss
per unit = $
Per firm? $
Will this industry expand or contract in the long run? Contract
Transcribed Image Text:Assume that the cost data in the following table are for a purely competitive producer:
Average
Average
Fixed
Average
Variable
Total
Total
Marginal
Product
Cost
Cost
Cost
Cost
1
$60.00
$45.00
$105.00 $45.00
2
30.00
42.50
72.50
40.00
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
8
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
Instructions: If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. Select "Not
applicable" and enter a value of "0" for output if the firm does not produce.
a. At a product price of $66.00
(i) Will this firm produce in the short run?
Yes
(ii) If it is preferable to produce, what will be the profit-maximizing or loss-minimizing output?
Profit-maximizing O output =
9 O units per firm
(iii) What economic profit or loss will the firm realize per unit of output? Profit
per unit = $
16 O
b. At a product price of $41.00
(i) Will this firm produce in the short run?
Yes
(ii) If it is preferable to produce, what will be the profit-maximizing or loss-minimizing output?
Loss-minimizing O output =
2 * units per firm
(iii) What economic profit or loss will the firm realize per unit of output?
Loss
per unit = $
6.50
c. At a product price of $32.00
(i) Will this firm produce in the short run?
No
(ii) If it is preferable to produce, what will be the profit-maximizing or loss-minimizing output?
Not applicable
output =
O units per firm
(iii) What economic profit or loss will the firm realize per unit of output? Total loss
per unit = $ |-22.50 8
Instructions: Enter your answers as a whole number. If you are entering any negative numbers be sure to include a negative sign (-) in
front of those numbers.
d. In the table below, complete the short-run supply schedule for the firm (columns 1 and 2) and indicate the profit or loss incurred at
each output (column 3).
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