Are my answers right? I don't know if I'm doing this right. Assume that the cost data in the following table are for a purely competitive producer:Average Average AverageVariableCostMarginalCostTotalFixedTotalProductCostCost1$60.00$45.00$105.00$4530.0042.5072.5040320.0040.0060.0035415.0037.5052.503012.0037.0049.0035610.0037.5047.504078.5738.5747.144587.5040.6348.13559.6.6743.3350.0065106.0046.5052.5075Instructions: Enter your answers rounded to two decimal places. Select "Not applicable" and enter "O" for output if the firm doesnot produce.a. At a product price of $56(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 output8 units per firm(iii) What economic profit or loss will the firm realize per unit of output? (Profit+ per unit =b. At a product price of $41(i) Will this firm produce in the short run?Yes(ii) If it is preferable to produce, what will be the profit-maximizing or loss-minimizing output?Loss-minimizingoutput6 units per firm(iii) What economic profit or loss will the firm realize per unit of output?per unit =$Loss6.50%24

Short run is defined as the time period in which atleast one of the factors used is fixed and others…

Lt a product price of $56 Vill 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 A output =a units per firm iii) What economic profit or loss will the firm realize per unit of output? Profit 9 per unit = t a product price of $41 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? Loss-minimizing output = 6 units per firm

Lt a product price of $56 Vill 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 A output =a units per firm iii) What economic profit or loss will the firm realize per unit of output? Profit 9 per unit = t a product price of $41 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? Loss-minimizing output = 6 units per firm

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter8: Perefect Competition

Section: Chapter Questions

Problem 5SQP

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Assume that the cost data in the following table are for a purely competitive producer: TotalProduct AverageFixed Cost AverageVariable Cost AverageTotal Cost Marginal Cost 0 1 $60.00 $45.00 $105.00 $45.00 2 30.00 42.50 72.50 40.00 3 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 9 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 "0" for output if the firm does not produce. a. At a product price of $56.00 (i) Will this firm produce in the short run? (Click to select) No Yes (ii) If it is preferable to produce, what will be the profit-maximizing or loss-minimizing output? (Click to select) Not applicable Loss-minimizing…
Assume that the cost data in the following table are for a purely competitive producer: TotalProduct AverageFixed Cost AverageVariable Cost AverageTotal Cost Marginal Cost 0 1 $ 60.00 $ 45.00 $ 105.00 $ 45.00 2 30.00 42.50 72.50 40.00 3 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 9 6.67 43.33 50.00 65.00 10 6.00 46.50 52.50 75.00 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 = 9 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…
Consider the competitive market for sports jackets. The following graph shows the marginal cost (MC), average total cost (ATC), and average variable cost (AVC) curves for a typical firm in the industry. 72 16 AVC 16 24 40 QUANTITY (Thousards of jaats) For each price in the following tabie, use the graph to determine the number of jackets this firm would produce in arder to maximize its profie. Assume that when the price is exacty equal to the average variabie cost, the firm is indifferent between producing zero jackets and the proft-maximizing quandity. Also, indicate whether the fiem wil produce, shut down, or be indiferent between the two in the short run. Lastiy, determine whether e w make a prafit, suffer a loss, ar break even at each price. Price Quantity (Dollars per jacket) (Jackets) Produce or Shut Down? Profit or Loss? 4 12 36 48 60
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Why will profits for films in a perfectly competitive industry tend to vanish in the long run?
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