I. PROBLEM SOLVING Below is a data of the per-unit costs incurred by a competitor in selling face mask per pack (5 masks per pack) per day. Output (in packs) АTC (P) MC (Р) AFC (P) AVC (P) 1 60.00 45.00 105.00 45.00 2 30.00 42.50 72.50 40.00 20.00 40.00 60.00 35.00 4 15.00 37.50 52.50 49.00 30.00 12.00 37.00 35.00 6 10.00 37.50 47.50 40.00 7 8.57 38.57 40.63 47.14 45.00 8 7.50 48.13 55.00 9 6.67 43.33 50.00 65.00 10 6.00 46.50 52.50 75.00 1. Assuming that the product's price is P58 per pack, should the competitor sell in the short-run Why or why not? If it decides to sell, what will be the profit-maximizing (or loss-minimizing output per day)? What is the profit (or loss) that the seller can realize per day? What is the profit (or loss) per pack? A. Assuming that the product price is P42 per pack, answer the same questions in letter A. B. Because of increasing sellers of masks in the market, the product's price further decreased to P32 per pack. Again, answer the same questions in letter A.

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Chapter1: Making Economics Decisions
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I. PROBLEM SOLVING
Below is a data of the per-unit costs incurred by a competitor in selling face mask per pack (5 masks
per pack) per day.
Output
(in packs)
AFC (P)
AVC (P)
АTC (Р)
MC (Р)
1
60.00
45.00
105.00
45.00
30.00
42.50
72.50
40.00
3
20.00
15.00
12.00
40.00
60.00
35.00
4
37.50
52.50
30.00
37.00
49.00
35.00
40.00
10.00
37.50
47.50
47.14
7
8.57
38.57
45.00
8
7.50
40.63
48.13
55.00
6.67
43.33
50.00
65.00
10
6.00
46.50
52.50
75.00
1. Assuming that the product's price is P58 per pack, should the competitor sell in the short-run
Why or why not?
If it decides to sell, what will be the profit-maximizing (or loss-minimizing output per day)?
What is the profit (or loss) that the seller can realize per day? What is the profit (or loss) per pack?
A. Assuming that the product price is P42 per pack, answer the same questions in letter A.
B. Because of increasing sellers of masks in the market, the product's price further decreased to P32
per pack. Again, answer the same questions in letter A.
C. When is this seller going to shut down?
D. Now generate the seller's supply curve of mask in the short run.
Transcribed Image Text:I. PROBLEM SOLVING Below is a data of the per-unit costs incurred by a competitor in selling face mask per pack (5 masks per pack) per day. Output (in packs) AFC (P) AVC (P) АTC (Р) MC (Р) 1 60.00 45.00 105.00 45.00 30.00 42.50 72.50 40.00 3 20.00 15.00 12.00 40.00 60.00 35.00 4 37.50 52.50 30.00 37.00 49.00 35.00 40.00 10.00 37.50 47.50 47.14 7 8.57 38.57 45.00 8 7.50 40.63 48.13 55.00 6.67 43.33 50.00 65.00 10 6.00 46.50 52.50 75.00 1. Assuming that the product's price is P58 per pack, should the competitor sell in the short-run Why or why not? If it decides to sell, what will be the profit-maximizing (or loss-minimizing output per day)? What is the profit (or loss) that the seller can realize per day? What is the profit (or loss) per pack? A. Assuming that the product price is P42 per pack, answer the same questions in letter A. B. Because of increasing sellers of masks in the market, the product's price further decreased to P32 per pack. Again, answer the same questions in letter A. C. When is this seller going to shut down? D. Now generate the seller's supply curve of mask in the short run.
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