Assume that the cost data in the following table are for a purely competitive producer: Total Product Average Fixed Cost Average Variable Cost Average Total Cost Marginal Cost 0 1 $ 60 $ 45 $ 105 $ 45 2 30 42.5 72.5 40 3 20 40 60 35 4 15 37.5 52.5 30 5 12 37 49 35 6 10 37.5 47.5 40 7 8.57 38.57 47.14 45 8 7.5 40.63 48.13 55 9 6.67 43.33 50 65 10 6 46.5 52.5 75 e. Now assume that there are 1,500 identical firms in this competitive industry. That is, there are 1,500 firms, each of which has the cost data shown in the table. Complete the industry supply schedule (column 4 in the table above). f. Suppose the market demand data for the product are as follows: Total Quantity Demanded Price $ 27 17,000 33 15,000 39 13,500 44 12,000 50 10,500 58 9,500 68 8,000 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? (Click to select) per unit = $ Per firm? $ Will this industry expand or contract in the long run? (Click to select) ✰
Assume that the cost data in the following table are for a purely competitive producer: Total Product Average Fixed Cost Average Variable Cost Average Total Cost Marginal Cost 0 1 $ 60 $ 45 $ 105 $ 45 2 30 42.5 72.5 40 3 20 40 60 35 4 15 37.5 52.5 30 5 12 37 49 35 6 10 37.5 47.5 40 7 8.57 38.57 47.14 45 8 7.5 40.63 48.13 55 9 6.67 43.33 50 65 10 6 46.5 52.5 75 e. Now assume that there are 1,500 identical firms in this competitive industry. That is, there are 1,500 firms, each of which has the cost data shown in the table. Complete the industry supply schedule (column 4 in the table above). f. Suppose the market demand data for the product are as follows: Total Quantity Demanded Price $ 27 17,000 33 15,000 39 13,500 44 12,000 50 10,500 58 9,500 68 8,000 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? (Click to select) per unit = $ Per firm? $ Will this industry expand or contract in the long run? (Click to select) ✰
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
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Transcribed Image Text:Assume that the cost data in the following table are for a purely competitive producer:
Total
Product
Average
Fixed Cost
Average
Variable Cost
Average
Total Cost
Marginal
Cost
0
1
$ 60
$ 45
$ 105
$ 45
2
30
42.5
72.5
40
3
20
40
60
35
4
15
37.5
52.5
30
5
12
37
49
35
6
10
37.5
47.5
40
7
8.57
38.57
47.14
45
8
7.5
40.63
48.13
55
9
6.67
43.33
50
65
10
6
46.5
52.5
75
Transcribed Image Text:e. Now assume that there are 1,500 identical firms in this competitive industry. That is, there are 1,500 firms, each of which has the cost
data shown in the table. Complete the industry supply schedule (column 4 in the table above).
f. Suppose the market demand data for the product are as follows:
Total Quantity
Demanded
Price
$ 27
17,000
33
15,000
39
13,500
44
12,000
50
10,500
58
9,500
68
8,000
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? (Click to select) per unit = $
Per firm? $
Will this industry expand or contract in the long run? (Click to select) ✰
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