[I think we probably won't get to everything in this question this week so you will probably need to look carefully at the part of the chapter about industry supply curves. Figure 11.8 is particularly relevant here.] Consider a firm with the following cost schedule as well as a fixed cost of 32 which is sunk in the short run. Q 1 2 3 4 5 6 7 8 9 10 TVC 20 30 36 44 54 66 80 96 114 134 a. What is the minimum price that would make this firm willing to produce in the short run. (There are two possible answers I will accept here.) b. If the price is 18, how many will the firm produce in the short run? c. What will the firm's profit be if the price is 18? Now let the demand for this good be given by the following schedule and assume that this is a perfectly competitive market with free entry/exit.
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[I think we probably won't get to everything in this question this week so you will probably need to look carefully at the part of the chapter about industry supply curves. Figure 11.8 is particularly relevant here.]
Consider a firm with the following cost schedule as well as a fixed cost of 32 which is sunk in the short run.
Q 1 2 3 4 5 6 7 8 9 10
TVC 20 30 36 44 54 66 80 96 114 134
a. What is the minimum
b. If the price is 18, how many will the firm produce in the short run?
c. What will the firm's profit be if the price is 18?
Now let the demand for this good be given by the following schedule and assume that this is a
P 6 8 10 12 14 16 18 20
QS 420 400 380 360 340 320 300 280
c. In the long run, what will the price be?
d. How many firms will there be?
e. What will the profit of each firm be?
f. The supply curve in the long run is perfectly ...
Since you have posted a question with multiple sub-parts, we will solve the first three subparts for you. To get the remaining sub-part solved please repost the complete question and mention the sub-parts to be solved.”.
Average cost is per unit cost of producing a good.
Marginal cost is the additional cost of producing a good.
Total cost is the sum of variable cost and fixed cost.
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