(1)     Price (2) Quantity supplied, single firm (3)   Profit (+) or loss (l) (4) Quantity supplied, 1500 firms                         $26 32 38 41 46 56 66   __0__ __0__ _  5__ _  6__ _  7__ __8__ __9__ $_ -60_ _-60_ _-55_ _-39_ __-8__ _63_ _144_ __0__ _ 0__ _7,500_ __9,000_ _10,500_ __12,000_ _13,500_   Suppose the market demand data for the product are as follows:           Price Total quantity demanded                 $26 32 38 41 41 56 66   17,000 15,000 13,500 12,000 10,500 9,500 8,000   What will equilibrium price be?  What will equilibrium output be for the industry?  For each firm?  What will profit or loss be per unit?  Per firm?  Will this industry expand or contract in the long run?

QUESTION 20 Study the table below which represents the cost and price schedules facing a perfectly competitive firm that manufactures bulbs. Use this information to answer the question. Quantity of the product 0 1 2 3 4 Price per unit (R) 10 10 10 10 10 10 c) d) 38022222 Total revenue Total profit (R) -10 -9 -5 -6 Marginal cost (R) . 9 6 8 10 13 Average variable cost (R) 9,00 7,50 7,67 8,25 9,20 This perfectly competitive firm will produce a) 3 bulbs, since losses are minimised. b) 4 bulbs, but it will consider shutting down in the short run. 4 bulbs, since at this production level it earns normal profit. 4 bulbs and will stay in operation.

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Firm A profit max Firm cannot sell any cannot sell any cannot sell any cannot sell any profit max can sell, but would lose money can sell, but would lose money Quantity 4 5 6 7 8 9 10 Quantity 4 5 price 10 $50,000 $200,000 $45,000 $225,000 $40,000 $35,000 $240,000 $245,000 $30,000 $240,000 $25,000 $225,000 $20,000 $200,000 $0 price $50,000 $45,000 6 $40,000 7 $35,000 8 $30,000 9 $25,000 $20,000 total revenue How much profit can firm B make, at maximum? total revenue $0 50 50 50 $240,000 $225,000 $200,000 marginal revenue total cost marginal total cost profit $160,000 $25,000 $175,000 $15,000 $190,000 $5,000 $205,000 ($5,000) $220,000 $15,000 $20,000 ($15,000) $235,000 $15,000 ($10,000) ($25,000) $250,000 $15,000 ($50,000) marginal revenue total cost $160,000 $0 $175,000 $0 $190,000 50 $205,000 $240,000 $220,000 ($15,000) $235,000 ($25,000) $250,000 $40,000 $50,000 $15,000 $15,000 $50,000 $15,000 $40,000 cost marginal total profit ($160,000) $15,000 ($175,000) $15,000 ($190,000) $15,000…