This is a long question so be aware! I need help figuring out if what I calculated for part c-f is correct?? How do I know if a firm will produce in the short run? d. In the table below, complete the short-run supply schedule for the firm (columns 1 and 2) and indicate the profit orloss incurred at each output (column 3).Instructions: Enter your answers as a whole number. If you are entering any negative numbers be sure to include anegative sign (-) in front of those numbers.(1)(2)QuantitySupplied,SingleFirm(3)Profit (+)or Loss(-)(4)QuantitySupplied,1,500FirmsPrice-60-60-55$26327,5009,00010,50012,00013,500385416-39467-863144568669e. Now assume that there are 1,500 identical firms in this competitive industry. That is, there are 1,500 firms, each ofwhich 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:TotalQualityPrice Demanded|17,000|15,000|13,500|12,000|10,5009,500$263238414656668,000What is the equilibrium price? $46What is the equilibrium output for the industry?10500 unitsFor each firm?unitsInstructions: Enter positive values for the reported profit or loss?What will profit or loss be per unit? Lossper unit = $1.14Per firm? $7.98Will this industry expand or contract in the long run?Contract Assume that the cost data in the following table are for a purely competitive producer:Average Average AverageFixed Variable Total MarginalTotalProductCostCostCostCost$60.0030.00$45.00 $105.0042.50$454035303540455565751272.5020.0040.0060.00415.0037.5052.5012.0037.0049.006.10.0037.5047.5078.5738.5747.148.7.5040.6348.1396.6743.3350.00106.0046.5052.50Instructions: Enter your answers rounded to two decimal places. Select "Not applicable" and enter "O" for output if thefirm 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-maximizingoutput =units per firm(iii) What economic profit or loss will the firm realize per unit of output? ProfitI per unit = $7.87b. 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-minimizingJoutput =units per firm(iii) What economic profit or loss will the firm realize per unit of output? | Loss+per unit = $6.50c. At a product price of $32(i) Will this firm produce in the short run? No(ii) If it is preferable to produce, what will be the profit-maximizing or loss-minimizing output?Not applicableoutput =units per firm(iii) What economic profit or loss will the firm realize per unit of output? Total lossper unit = $60

c) At a product price of $32 The firm will produce NO output in the short run. At this price, It…

Answered: This is a long question so be aware! I…

This is a long question so be aware! I need help figuring out if what I calculated for part c-f is correct?? How do I know if a firm will produce in the short run?

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter11: The Firm: Production And Costs

Section: Chapter Questions

Problem 21P

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Question

This is a long question so be aware! I need help figuring out if what I calculated for part c-f is correct?? How do I know if a firm will produce in the short run?

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).
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.
(1)
(2)
Quantity
Supplied,
Single
Firm
(3)
Profit (+)
or Loss
(-)
(4)
Quantity
Supplied,
1,500
Firms
Price
-60
-60
-55
$26
32
7,500
9,000
10,500
12,000
13,500
38
5
41
6
-39
46
7
-8
63
144
56
8
66
9
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:
Total
Quality
Price Demanded
|17,000
|15,000
|13,500
|12,000
|10,500
9,500
$26
32
38
41
46
56
66
8,000
What is the equilibrium price? $
46
What is the equilibrium output for the industry?
10500 units
For each firm?
units
Instructions: Enter positive values for the reported profit or loss?
What will profit or loss be per unit? Loss
per unit = $
1.14
Per firm? $7.98
Will this industry expand or contract in the long run?
Contract

Assume that the cost data in the following table are for a purely competitive producer:
Average Average Average
Fixed Variable Total Marginal
Total
Product
Cost
Cost
Cost
Cost
$60.00
30.00
$45.00 $105.00
42.50
$45
40
35
30
35
40
45
55
65
75
1
2
72.50
20.00
40.00
60.00
4
15.00
37.50
52.50
12.00
37.00
49.00
6.
10.00
37.50
47.50
7
8.57
38.57
47.14
8.
7.50
40.63
48.13
9
6.67
43.33
50.00
10
6.00
46.50
52.50
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 =
units per firm
(iii) What economic profit or loss will the firm realize per unit of output? Profit
I per unit = $
7.87
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
Joutput =
units per firm
(iii) What economic profit or loss will the firm realize per unit of output? | Loss
+per unit = $
6.50
c. At a product price of $32
(i) Will this firm produce in the short run? No
(ii) If it is preferable to produce, what will be the profit-maximizing or loss-minimizing output?
Not applicable
output =
units per firm
(iii) What economic profit or loss will the firm realize per unit of output? Total loss
per unit = $
60

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Assume that the cost data in the following table are for a purely competitive producer: TotalProduct AverageFixed Cost AverageVariable Cost AverageTotal 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 a. At a product price of $56.00 (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 = 9 units per firm (iii) What economic profit or loss will the firm realize per unit of output? Profit per unit = $ 16 b. At a product price of $41.00 (i) Will this firm produce in the short run? Yes (ii) If it is preferable to produce, what will be the…
Cost figures for a hypothetical firm are given in the following table. Use them for the exercises below. The firm is selling in a perfectly competitive market. Output Fixed AFC Variable AVC Total ATC MC Cost Cost cost 1 $50 50/1=50 $30 30/1=30 30+50=80 80/1=80 NA 2 $50 50/2=25 $50 50/2=25 50+50=100 100/2=50 (100-80)/(2-1)=20 3 $50 50/3=16.67 $80 80/3=26.67 50+80=130 130/3=43.33 (130-100)/(3-2)=30 4 $50 50/4=12.50 $120 120/4=30 50+120=170 170/4=42.50 (170-130)/(4-3)=40 5 $50 50/5=10 $170 170/5=34 50+170=220 220/5=44 (220-170)/(5-4) =50 What can you expect from an industry in perfect competition in the long run? That is, what will the price be? What quantity will be produced? What will be the relation between marginal cost, average cost, and price?
The following cost data is for a firm which is selling in a perfectly competitive market: Average fixed Average variable Average total Total Marginal cost S17 product cost S100.00 50.00 33.33 25.00 20.00 cost $17.00 cost $117.00 66.00 47.33 39.25 34.00 2 16.00 15 3 4 15.00 14.25 14.00 14.00 15.71 17.50 13 12 13 16.67 14.29 12.50 11.11 10.00 9.09 7.33 30.67 30.00 14 26 30 35 7 8. 9. 10 11 30.00 30.55 31.60 33.09 35.00 19.44 21.60 41 24.00 48 12 26.67 56 Refer to the data above. If there were 600 identical firms in this industry and total or market demand is as shown below, equilibrium price will be: Quantity demanded 3,000 6,000 9,000 11,000 14,000 19,500 Price $50 42 36 32 20 13 $36
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