a. At a product price of $56.00 (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? Profit- maximizing output = 8 units per firm (iii) What economic profit or loss will the firm realize per unit of output? Profit per unit = $ 62.96 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? Profit-maximizing output = 6 units per firm (iii) What economic profit or loss will the firm realize per unit of output? Loss per unit = $ 39
a. At a product price of $56.00
(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? Profit- maximizing output = 8 units per firm
(iii) What economic profit or loss will the firm realize per unit of output? Profit per unit = $ 62.96
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? Profit-maximizing output = 6 units per firm
(iii) What economic profit or loss will the firm realize per unit of output? Loss 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? Non applicable
output = 0 units per firm
iii) What economic profit or loss will the firm realize per unit of output? Total loss per unit = $ 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).
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