Answer to Question #92209 in Microeconomics for ash

Question

Assume the following unit-cost data are for a perfectly competitive producer: Total product=x. (AFC:AVC:ATC:MC)=y. (1,60:45:105:45) (2,30:42.5:72.5:40) (3,20:40:60:35) (4,15:37.5:52.5:30) (5,12:37:49:35) (6,10:37.5:47.5:40) (7,8.57:38.57:47.14:45) (8,7.5:40.63:48.13:55) (9,6.67:43.33:50:65) (10,6:46.5:52.5:75)
a)At a product price of $56, will this firm produce in the short run? Why, or why not? If it does produce, what will be the profit-maximizing or loss-minimizing output? Explain. What economic profit or loss will the firm realize per unit of output
b)what will happen now assuming that product price is $41?
c)what will happen now assuming that product price is $32?
d)complete the short-run supply schedule for the firm & indicate the profit or loss incurred at each output. assume there are 1500 identical firms in this competitive industry; that is, there are 1500 firms, each of which has the same cost data as shown here. Calculate the industry supply schedule: at $26,32,38,41,46,56,66

Answer 1

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