In Problem 5, the market demand decreases and the demand schedule becomes: If firms have the same costs set out in Problem 5, what is the market price and the firm’s economic profit or loss in the short run?

Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter9: Price Takers And The Competitive Process
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In Problem 5, the market demand decreases and the demand schedule becomes:

If firms have the same costs set out in Problem 5, what is the market price and the firm’s economic profit or loss in the short run?

Problem 5

The market for paper is perfectly competitive and 1,000 firms produce paper. The table sets out the market demand schedule for paper.

The table in the next column sets out the costs of each producer of paper. Calculate the market price, the market output, the quantity produced by each firm, and the firm’s economic profit or loss.

 

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