Assume the following cost data are for a purely competitive producer Total Product AFC AVC ATC MC 0         1 $60 $45 $105 $45 2 $30 $42.50 $72.50 $40 3 $20 $40 $60 $35 4 $15 $37.50 $52.50 $30 5 $12 $37 $49 $35 6 $10 $37.50 $47.50 $40 7 $8.57 $38.57 $47.14 $45 8 $7.50 $40.63 $48.13 $55 9 $6.67 $43.33 $50 $65 10 $6.00 $46.50 $52.50 $75 At a price product of $56, will this firm produce in the short run? Why or Why not? If it is preferable to produce, what will be the profit-maximizing or loss-minimizing output? Explain. What economic profit or loss will the firm realize per unit of output?

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Assume the following cost data are for a purely competitive producer

Total Product

AFC

AVC

ATC

MC

0

 

 

 

 

1

$60

$45

$105

$45

2

$30

$42.50

$72.50

$40

3

$20

$40

$60

$35

4

$15

$37.50

$52.50

$30

5

$12

$37

$49

$35

6

$10

$37.50

$47.50

$40

7

$8.57

$38.57

$47.14

$45

8

$7.50

$40.63

$48.13

$55

9

$6.67

$43.33

$50

$65

10

$6.00

$46.50

$52.50

$75

  1. At a price product of $56, will this firm produce in the short run? Why or Why not? If it is preferable to produce, what will be the profit-maximizing or loss-minimizing output? Explain. What economic profit or loss will the firm realize per unit of output?
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