Assume that the cost data in the following table are for a purely competitive producer: Average Fixed Average Variable Average Total Total Marginal Cost Product 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 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 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 "O" for output if the firm does not produce. a. At a product price of $66.00 (1) 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 = units per firm (iii) What economic profit or loss will the firm realize per unit of output? ProfitO 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 = 6 O units per firm (iii) What economic profit or loss will the firm realize per unit of output? Loss 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 output = units per firm (iii) What economic profit or loss will the firm realize per unit of output? Total loss per unit = $
Assume that the cost data in the following table are for a purely competitive producer: Average Fixed Average Variable Average Total Total Marginal Cost Product 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 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 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 "O" for output if the firm does not produce. a. At a product price of $66.00 (1) 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 = units per firm (iii) What economic profit or loss will the firm realize per unit of output? ProfitO 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 = 6 O units per firm (iii) What economic profit or loss will the firm realize per unit of output? Loss 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 output = units per firm (iii) What economic profit or loss will the firm realize per unit of output? Total loss per unit = $
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Please help with b (iii), c (iii), and the three incorrect answers in the chart in d. If someone can help I will give a thumbs up. Thanks! :)
Transcribed Image Text: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).
X Answer is complete but not entirely correct.
(1)
(2)
(3)
(4)
Quantity
Supplied,
Single Firm
Profit (+) or
Loss (-)
Quantity
Supplied, 1,500
Firms
Price
$22.00
0.00
-60.00
0.00
27.00
0.00
-60.00
0.00
32.00
0.00
-60.00
0.00
38.00
5.00
-55.00
7,500.00
43.00
6.00
-39.00
9,000.00
47.00
7.00
-8.00
10,500.00
57.00
8.00
-63.00 X
12,000.00
Transcribed Image Text:Assume that the cost data in the following table are for a purely competitive producer:
Average
Fixed
Average
Variable
Average
Total
Total
Marginal
Cost
Product
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
15.00
37.50
52.50
30.00
12.00
37.00
49.00
35.00
6
10.00
37.50
47.5e
40.00
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
output =
units per firm
(iii) What economic profit or loss will the firm realize per unit of output?Profit
O 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
output =
units per firm
(iii) What economic profit or loss will the firm realize per unit of output?
Loss
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
output =
units per firm
(iii) What economic profit or loss will the firm realize per unit of output? Total loss
per unit = $
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