Cost data are for purely competitive producer

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Reference no: EM131169522

Assume that the following cost data are for a purely competitive producer: 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: 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 $66.00 (b) At a product price of $41.00 (c) At a product price of $32.00 Will this firm produce in the short run? If it is preferable to produce, what will be the profit-maximizing or loss-minimizing output? output = units per firm output = units per firm output = units per firm What economic profit or loss will the firm realize per unit of output? per unit = $ per unit = $ = $ 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: Enter your answers as whole numbers. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. e. 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). f. Suppose the market demand data for the product are as follows: What will be the equilibrium price? $ . What will be the equilibrium output for the industry? . For each firm? units. Instructions: Round your answers to 2 decimal places. Enter positive values for profit or loss. What will profit or loss be per unit? per unit = $ . Per firm? $ . Will this industry expand or contract in the long run?

Reference no: EM131169522

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