Lt a product price of $56 Vill this firm produce in the short run? ii) If it is preferable to produce, what will be the profit-maximizing or loss-minimizing output? Profit-maximizing A output =a units per firm iii) What economic profit or loss will the firm realize per unit of output? Profit 9 per unit = t a product price of $41 i) Will this firm produce in the short run? ii) If it is preferable to produce, what will be the profit-maximizing or loss-minimizing output? Loss-minimizing output = 6 units per firm
Lt a product price of $56 Vill this firm produce in the short run? ii) If it is preferable to produce, what will be the profit-maximizing or loss-minimizing output? Profit-maximizing A output =a units per firm iii) What economic profit or loss will the firm realize per unit of output? Profit 9 per unit = t a product price of $41 i) Will this firm produce in the short run? ii) If it is preferable to produce, what will be the profit-maximizing or loss-minimizing output? Loss-minimizing output = 6 units per firm
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter8: Perefect Competition
Section: Chapter Questions
Problem 5SQP
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![Assume that the cost data in the following table are for a purely competitive producer:
Average Average Average
Variable
Cost
Marginal
Cost
Total
Fixed
Total
Product
Cost
Cost
1
$60.00
$45.00
$105.00
$45
30.00
42.50
72.50
40
3
20.00
40.00
60.00
35
4
15.00
37.50
52.50
30
12.00
37.00
49.00
35
6
10.00
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
50.00
65
10
6.00
46.50
52.50
75
Instructions: Enter your answers rounded to two decimal places. Select "Not applicable" and enter "O" for output if the firm does
not produce.
a. At a product price of $56
(i) Will this firm produce in the short run?
Yes
(ii) If it is preferable to produce, what will be the profit-maximizing or loss-minimizing output?
Profit-maximizing output
8 units per firm
(iii) What economic profit or loss will the firm realize per unit of output? (Profit
+ per unit =
b. At a product price of $41
(i) Will this firm produce in the short run?
Yes
(ii) If it is preferable to produce, what will be the profit-maximizing or loss-minimizing output?
Loss-minimizing
output
6 units per firm
(iii) What economic profit or loss will the firm realize per unit of output?
per unit =
$
Loss
6.50
%24](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff2188b11-926f-4a02-9047-46f03f4937df%2F21ff6e02-1bf8-4b3b-bc5a-70d953557f92%2F7wuklix_processed.png&w=3840&q=75)
Transcribed Image Text:Assume that the cost data in the following table are for a purely competitive producer:
Average Average Average
Variable
Cost
Marginal
Cost
Total
Fixed
Total
Product
Cost
Cost
1
$60.00
$45.00
$105.00
$45
30.00
42.50
72.50
40
3
20.00
40.00
60.00
35
4
15.00
37.50
52.50
30
12.00
37.00
49.00
35
6
10.00
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
50.00
65
10
6.00
46.50
52.50
75
Instructions: Enter your answers rounded to two decimal places. Select "Not applicable" and enter "O" for output if the firm does
not produce.
a. At a product price of $56
(i) Will this firm produce in the short run?
Yes
(ii) If it is preferable to produce, what will be the profit-maximizing or loss-minimizing output?
Profit-maximizing output
8 units per firm
(iii) What economic profit or loss will the firm realize per unit of output? (Profit
+ per unit =
b. At a product price of $41
(i) Will this firm produce in the short run?
Yes
(ii) If it is preferable to produce, what will be the profit-maximizing or loss-minimizing output?
Loss-minimizing
output
6 units per firm
(iii) What economic profit or loss will the firm realize per unit of output?
per unit =
$
Loss
6.50
%24
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