(i) Will this firm produce in the short run? (Click to select) No Yes (ii) If it is preferable to produce, what will be the profit-maximizing or loss-minimizing output? (Click to select) Not applicable Loss-minimizing Profit-maximizing output = units per firm (iii) What economic profit or loss will the firm realize per unit of output? (Click to select) Not applicable Profit Loss per unit = $ b. At a product price of $41.00 (i) Will this firm produce in the short run? (Click to select) Yes No (ii) If it is preferable to produce, what will be the profit-maximizing or loss-minimizing output? (Click to select) Not applicable Loss-minimizing Profit-maximizing output = units per firm (iii) What economic profit or loss will the firm realize per unit of output? (Click to select) Not applicable Profit Loss per unit = $ c. At a product price of $32.00 (i) Will this firm produce in the short run? (Click to select) Yes No (ii) If it is preferable to produce, what will be the profit-maximizing or loss-minimizing output? (Click to select) Loss-minimizing Not applicable Profit-maximizing output = units per firm (iii) What economic profit or loss will the firm realize per unit of output? (Click to select) Total loss Total profit per unit = $ 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). 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: Price Total Quality Demanded $26.00 17,000 32.00 15,000 38.00 13,500 41.00 12,000 46.00 10,500 56.00 9,500 66.00 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) Profit Loss per unit = $ Per firm? $ Will this industry expand or contract in the long run? (Click to select) Expand Contract
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 | $60.00 | $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 |
| 6 | 10.00 | 37.50 | 47.50 | 40.00 |
| 7 | 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
(i) Will this firm produce in the short run? (Click to select) No Yes
(ii) If it is preferable to produce, what will be the profit-maximizing or loss-minimizing output?
(Click to select) Not applicable Loss-minimizing Profit-maximizing output = units per firm
(iii) What economic profit or loss will the firm realize per unit of output? (Click to select) Not applicable Profit Loss per unit = $
b. At a product price of $41.00
(i) Will this firm produce in the short run? (Click to select) Yes No
(ii) If it is preferable to produce, what will be the profit-maximizing or loss-minimizing output?
(Click to select) Not applicable Loss-minimizing Profit-maximizing output = units per firm
(iii) What economic profit or loss will the firm realize per unit of output? (Click to select) Not applicable Profit Loss per unit = $
c. At a product price of $32.00
(i) Will this firm produce in the short run? (Click to select) Yes No
(ii) If it is preferable to produce, what will be the profit-maximizing or loss-minimizing output?
(Click to select) Loss-minimizing Not applicable Profit-maximizing output = units per firm
(iii) What economic profit or loss will the firm realize per unit of output? (Click to select) Total loss Total profit per unit = $
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).
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:
| Price | Total Quality Demanded |
| $26.00 | 17,000 |
| 32.00 | 15,000 |
| 38.00 | 13,500 |
| 41.00 | 12,000 |
| 46.00 | 10,500 |
| 56.00 | 9,500 |
| 66.00 | 8,000 |
What is the
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) Profit Loss per unit = $
Per firm? $
Will this industry expand or contract in the long run? (Click to select) Expand Contract
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