Assume that the cost data in the following table are for a purely competitive producer: Average Average Variable Average Marginal Total Product Fixed Total Cost Cost Cost Cost 1 $60.00 $45.00 $105.00 $45.00 30.00 42.50 72.50 40.00 3 20.00 40.00 60.00 35.00 4 15.00 37.5e 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 6.67 43.33 50.00 65.00 10 6.00 46.50 52.50 75.00 Instructions: If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. Select "No applicable" and enter a value of "0" for output if the firm does not produce. a. At a product price of $66.00 (i) Will this firm produce in the short run? Yes (ii) If it is preferable to produce, what be the profit-maximizing or loss-minimizing output? Profit-maximizing O output = 9 O 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 profit-maximizing or loss-minimizing output? Loss-minimizingO output = 6 O units per firm (iii) What economic profit or loss will the firm realize per unit of output? Loss V per unit = $ -39 0 c. At a product price of $32.00 (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 = 0 O units per firm (iii) What economic profit or loss will the firm realize per unit of output? Total loss per unit = $ 60 0 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. 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). (1) (2) Quantity Supplied, Single Firm (3) (4) Profit (+) or Loss (-) Quantity Supplied, 1,500 Firms Price $22.00 27.00 32.00 38.00 43.00 47.00 57.00

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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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
$22.00
19,000
17,000
15,000
13,500
27.00
32.00
38.00
43.00
12,000
47.00
10,500
57.00
9,500
What is the equilibrium price? $
What is the equilibrium output for the industry?
units
For each firm?
units
Instructions: Enter your answers rounded to two decimal places. Enter positive values for profit or loss.
What will profit or loss be per unit?
Loss
per unit = $
Per firm? $
Will this industry expand or contract in the long run? Contract
Transcribed Image Text: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 $22.00 19,000 17,000 15,000 13,500 27.00 32.00 38.00 43.00 12,000 47.00 10,500 57.00 9,500 What is the equilibrium price? $ What is the equilibrium output for the industry? units For each firm? units Instructions: Enter your answers rounded to two decimal places. Enter positive values for profit or loss. What will profit or loss be per unit? Loss per unit = $ Per firm? $ 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
Variable
Total
Fixed
Total
Marginal
Product
Cost
Cost
Cost
Cost
$60.00
$45.00
$105.00 $45.00
2
30.00
42.50
72.50
40.00
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
6.67
43.33
50.00
65.00
10
6.00
46.50
52.50
75.00
Instructions: If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. Select "Not
applicable" and enter a value of "O" for output if the firm does not produce.
a. At a product price of $66.00
(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?
Profit-maximizing
O output =
9 O 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 profit-maximizing or loss-minimizing output?
Loss-minimizing O
output = |
6
units per firm
(iii) What economic profit or loss will the firm realize per unit of output?
Loss
O
per unit = $
-39
c. At a product price of $32.00
(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 =
0 O units per firm
(iii) What economic profit or loss will the firm realize per unit of output? Total loss O per unit = $
60 0
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.
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).
(1)
(2)
(3)
(4)
Quantity
Supplied,
Single Firm
Profit (+) or
Loss (-)
Quantity Supplied,
1,500 Firms
Price
$22.00
27.00
32.00
38.00
43.00
47.00
57.00
Transcribed Image Text:Assume that the cost data in the following table are for a purely competitive producer: Average Average Average Variable Total Fixed Total Marginal Product Cost Cost Cost Cost $60.00 $45.00 $105.00 $45.00 2 30.00 42.50 72.50 40.00 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 6.67 43.33 50.00 65.00 10 6.00 46.50 52.50 75.00 Instructions: If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. Select "Not applicable" and enter a value of "O" for output if the firm does not produce. a. At a product price of $66.00 (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? Profit-maximizing O output = 9 O 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 profit-maximizing or loss-minimizing output? Loss-minimizing O output = | 6 units per firm (iii) What economic profit or loss will the firm realize per unit of output? Loss O per unit = $ -39 c. At a product price of $32.00 (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 = 0 O units per firm (iii) What economic profit or loss will the firm realize per unit of output? Total loss O per unit = $ 60 0 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. 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). (1) (2) (3) (4) Quantity Supplied, Single Firm Profit (+) or Loss (-) Quantity Supplied, 1,500 Firms Price $22.00 27.00 32.00 38.00 43.00 47.00 57.00
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