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 Tasksa. **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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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.

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

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question 7 of 20 Total Total Average Average Average Fixed Variable Total Marginal Variable Fixed Cost $200 Output Total (Q) Cost Cost Cost Cost Cost Cost $0 $200 $200 $150 $350 40 $200 $250 $450 60 $200 $450 $650 80 $200 $800 $1,000 For the cost data shown above, what is this firm's Average Total Cost (ATC) when Output (Q) is 80? $12.50 $1,000 $11.25 O $10.83 20
Table Cost.EX2: Costs and Outputs for a Competitive Firm Total Total Output Fixed Variable (Q) Costs (TFC) Costs (TVC) $30.00 $0.00 3. $30.00 $40.00 6. $30.00 $90.00 9. $30.00 $130.00 12 $30.00 $190.00 15 $30.00 $260.00 Refer to Table Cost.EX2. For the 6 units, the average total cost is about O $20.00 O $16.67 O $5.00 $15.00
Table Cost.EX2: Costs and Outputs for a Competitive Firm Total Total Output Fixed Variable (Q) Costs (TFC) Costs (TVC) $40.00 $0.00 $40.00 $40.00 4 $40.00 $90.00 9. $40.00 $130.00 8. $40.00 $190.00 10 $40.00 $260.00 Refer to Table Cost.EX2. For 8 units, the average total cost is about O $23.75 O $26.75 O $30.00 $28.75
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37 Total Total Average Average Output Fixed Variable Total Variable Total Marginal (Q) Cost Cost Cost Cost Cost Cost E of 150 $500 $400 $900 $2.67 200 $500 $800 $1,300 $6.50 The table above shows costs for a firm. When Q = 150, Average Total Cost (ATC) is equal to: Select one: а. $3.33 b. $900 c. $6.00 d. $2.67
Table Cost.EX2: Costs and Outputs for a Competitive Firm Total Total Output Fixed Variable (Q) Costs (TFC) Costs (TVC) $30.00 $0.00 $30.00 $40.00 9. $30.00 $90.00 6. 12 $30.00 $130.00 $30.00 $190.00 15 $30.00 $260.00 Refer to Table Cost.EX2. For the 6 units, the average total cost is about O $5.00 O S20.00 O $16.67 O $15.00
Question 6 of 20 Total Total Average Average Average Fixed Variable Total Marginal Variable Fixed Cost $200 Output Total (Q) Cost Cost Cost Cost Cost Cost $0 $200 $200 $150 $350 40 $200 $250 $450 60 $200 $450 $650 80 $200 $800 $1,000 For the cost data shown above, what is this firm's Average Variable Cost (AVC) when Output (Q) is 60? $7.50 $6.25 $5.00 $450 20
Question 9 of 20 Total Total Average Average Average Fixed Variable Total Marginal Variable Fixed Cost $200 Output Total (Q) Cost Cost Cost Cost Cost Cost $0 $200 $200 $150 $350 40 $200 $250 $450 60 $200 $450 $650 80 $200 $800 $1,000 For the cost data shown above, what is this firm's Average Fixed Cost when Output (Q) is 20? $10.00 $2.50 $200 O $5.00 20
The table below shows the weekly cost of producing cowboy hats. Complete the table by filling in the missing values. Instructions: Round your answers to 1 decimal place. Cowboy Hat Production Costs Total Fixed Cost (dollars) $2,000 Total Variable Cost (dollars) Total Cost (dollars) $2,000 Average Fixed Cost (dollars) Average Variable Cost (dollars) Average Total Cost (dollars) Output $0 10 300 24 $4 $230 20 2,460 23 123 30 660 66.7 22 40 2,900 72.5 50 1,200 24
Question 11 11.1. Revenue is the same as profit. Do you agree with this statement? Justify your answer. 11.2. Using your knowledge of cost formulas and calculations for a firm producing in the short-run, redraw the table below in your answer book and complete the table by filling in the blank spaces. [Tip: Answers should be rounded off by two decimals]. (5) Total Average Variable Cost Average Total Cost (ATC) Total Total Cost Average Fixed Fixed Cost Marginal Cost (MC) Variable Quantity Cost Cost (TFC) (TVC) (TC) (AFC) (AVC) 80 80 1 80 12 80 12 2 80 28 40 14 54 3 34 114 26.67 38 6. 4 80 39 119 20 9.75 29.75 80 42 122 16 8.4 24.4 80 128 13.33 8 21.33 7 80 56 136 11.43 8 8 80 61 141 10 7.63 17.63 9 80 68 148 7.56 16.44 10 80 157 8 7.7 15.7 9. 11.3. Suppose a firm producing coffee provides you with the following information: Price = R100 Quantity = 150 units of coffee Cost of production = R9500 11.3.1. Calculate the total revenue of the firm. 11.3.2. Is the firm currently making a profit…
Imagine that you are a price-taking firm with the following total cost schedule. Q 1 2 3 5 6 8 9 TC 10 16 20 23 27 32 38 45 53 Assume that if this firm produces zero they have a total cost of zero. (That is in italics because it's important. Notice that this is a problem we have done before except for a little twist. Can you notice what it is?) Another way of saying this is that there is no fixed cost. Fill in the following supply schedule. (Enter only integers.) (If you don't know what I'm talking about, pleeeeeease go back and figure out what supply means before you try to answer!) [Here is a hint: For each price and quantity you propose, check the profit.] P Qs 3 4 6 8