2.Assume the following cost data are for a purely competitive producer: see table below: Total Average Average Product Fixed Cost Variable Cost 0 I 2 3 4 5 6 7 8 9 10 $60.00 30.00 20.00 15.00 12.00 10.00 8.57 7.50 6.67 6.00 $45.00 42.50 40.00 37.50 37.00 37.50 38.57 40.63 43.33 46.50 Average Total Cost $105.00 72.50 60.00 52.50 49.00 47.50 47.14 48.13 50.00 52.50 Marginal Cost $45 40 35 30 35 40 45 55 65 75 a. At a product price of $66, will this firm produce in the short run? If it is preferable to produce, what will be the profit-maximizing or loss-minimizing output? What economic profit or loss will the firm realize per unit of output. b. Answer the questions of 2a assuming product price is $46. Explain in detail. c. Answer the questions of 2a assuming product price is $38. Explain in detail.

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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The document presents a table and a set of questions related to a purely competitive producer's cost data.

### Table: Cost Data for a Purely Competitive Producer

| Total Product | Average Fixed Cost | Average Variable Cost | Average Total Cost | Marginal Cost |
|---------------|---------------------|-----------------------|--------------------|---------------|
| 0             | $60.00              | -                     | -                  | $45           |
| 1             | 30.00               | 45.00                 | 75.00              | 40            |
| 2             | 15.00               | 40.00                 | 55.00              | 30            |
| 3             | 10.00               | 40.00                 | 50.00              | 25            |
| 4             | 7.50                | 37.50                 | 45.00              | 35            |
| 5             | 6.00                | 40.00                 | 46.00              | 45            |
| 6             | 5.00                | 45.00                 | 50.00              | 55            |
| 7             | 4.29                | 50.00                 | 54.29              | 65            |
| 8             | 3.75                | 57.50                 | 61.25              | 70            |
| 9             | 3.33                | 66.67                 | 70.00              | 75            |
| 10            | 3.00                | 70.00                 | 73.00              | 75            |

### Questions and Tasks

a. **Product Price of $66:** Will the firm produce in the short run? If so, determine the profit-maximizing or loss-minimizing output. Calculate the economic profit or loss per unit of output.

b. **Product Price of $46:** Repeat the analysis of question 2a and explain in detail.

c. **Product Price of $38:** Repeat the analysis of question 2a and explain in detail.

d. **Short-Run Supply Schedule:** Complete the firm's supply schedule (columns 1 and 2) and indicate the profit or loss at each output level (column 3).

e. **Industry Supply Schedule:** Assuming 1,500
Transcribed Image Text:The document presents a table and a set of questions related to a purely competitive producer's cost data. ### Table: Cost Data for a Purely Competitive Producer | Total Product | Average Fixed Cost | Average Variable Cost | Average Total Cost | Marginal Cost | |---------------|---------------------|-----------------------|--------------------|---------------| | 0 | $60.00 | - | - | $45 | | 1 | 30.00 | 45.00 | 75.00 | 40 | | 2 | 15.00 | 40.00 | 55.00 | 30 | | 3 | 10.00 | 40.00 | 50.00 | 25 | | 4 | 7.50 | 37.50 | 45.00 | 35 | | 5 | 6.00 | 40.00 | 46.00 | 45 | | 6 | 5.00 | 45.00 | 50.00 | 55 | | 7 | 4.29 | 50.00 | 54.29 | 65 | | 8 | 3.75 | 57.50 | 61.25 | 70 | | 9 | 3.33 | 66.67 | 70.00 | 75 | | 10 | 3.00 | 70.00 | 73.00 | 75 | ### Questions and Tasks a. **Product Price of $66:** Will the firm produce in the short run? If so, determine the profit-maximizing or loss-minimizing output. Calculate the economic profit or loss per unit of output. b. **Product Price of $46:** Repeat the analysis of question 2a and explain in detail. c. **Product Price of $38:** Repeat the analysis of question 2a and explain in detail. d. **Short-Run Supply Schedule:** Complete the firm's supply schedule (columns 1 and 2) and indicate the profit or loss at each output level (column 3). e. **Industry Supply Schedule:** Assuming 1,500
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