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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) ✰

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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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: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) ✰
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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