Answer D and E Average Total Marginal CostAverage FixedCostAverageVariable CostTotal ProductCost0.00 $0.00nana60.00 $45.00 S105.00 $45.0012430.00 $42.50 $72.50 $40.0020.00 $40.00 s37.50 $60.00 $52.50 $49.00 $%2435.00415.00 $30.0012.00 $10.00 $5%2437.00 $35.0037.50 $38.57 S47.50 $47.14 $6%2440.008.57 $7.50 $2445.0040.63 $48.13 $50.00 $82455.006.67 $6.00 $43.33 $46.50 $65.00102$52.50 $75.00Answer the questions in the first column in the table below for the price listed atthe top of each of the other three columns.Instructions: Round your answers to 2 decimal places. If you are entering anynegative numbers be sure to include a negative sign (-) in front of those numbers.Select "Not applicable" and enter a value of "0" for output if the firm does notproduce.(a)(b)(c)At a product price of $57.00 At a product price of $42.00 At a product price of $33.00Will this firm produce in the short run?YesYesNoProfit-maximizingoutput = 8 unitsper firmProfit-maximizingIf it is preferable to produce, what will bethe profit-maximizing or loss-minimizingoutput?Profit-maximizingoutput =output =6) unitsper firm4 unitsper firmTotal profit= $ 19.5ProfitProfitWhat economic profit or loss will the firmrealize per unit of output?per unit = S 8.87]per unit = $ -5.5d. In the table below, complete the short-run supply schedule for the firm (columns1 and 2) and indicate the profit or loss incurred at each output (column 3).Instructions: Round your answers to 2 decimal places. If you are entering anynegative numbers be sure to include a negative sign (-) in front of those numbers.(1)(2)(3)(4)Quantity Supplied,Single FirmProfit (+) or Loss (-)Quantity Supplied, 1,500FirmsPrice$27.0033.0039.0042.0047.0057.0067.00e. 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).

We know that the supply curve is the rising portion of the MC curve, which is over and above the…

Average Fixed Cost Average Variable Cost 0.00 S Average Total Cost 0.00 105.00 $ Total Product Marginal Cost na na 60.00 $ 30.00 $ 45.00 $ 45.00 1 42.50 S 72.50 $ 40.00 60.00 $ 52.50 $ 49.00 $ 20.00 $ 40.00 S 35.00 15.00 $ 37.50 S 30.00 4 12.00 $ 37.00 35.00 37.50 $ 38.57 S 10.00 S 47.50 $ 40.00 8.57 $ 47.14 $ 48.13 $ 50.00 $ 52.50 $ 45.00 7.50 %24 40.63 55.00 6.67 $ 43.33 65.00 10 6.00 $ 46.50 S 75.00 Answer the questions in the first column in the table below for the price listed at the top of each of the other three columns. Instructions: Round your answers to 2 decimal places. 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 "0" for output if the firm does not produce. (b) At a product price of $57.00 At a product price of $42.00 At a product price of $33.00 (a) Will this firm produce in the short run? Yes Yes No Profit-maximizing Profit-maximizing output =6 units per fim Profit-maximizing output =4 units per firm Total profit If it is preferable to produce, what will be the profit-maximizing or loss-minimizing output =8 units per firm output? Profit Profit What economic profit or loss will the firm realize per unit of output? per unit = S 8.87 per unit = $ -5.5 = $_19.5) 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). Instructions: Round your answers to 2 decimal places. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. (1) (2) Quantity Supplied, Profit (+) or Loss (-) Single Firm (3) (4) Quantity Supplied, 1,500 Firms Price $27.00 33.00 39.00 42.00 47.00 57.00 67.00

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Proudction Costs

Section: Chapter Questions

Problem 8SQP