+1-415-670-9189
info@expertsmind.com
What economic profit or loss will the firm realize
Course:- Microeconomics
Reference No.:- EM131469689




Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Microeconomics

Assume the cost data in the table are for a purely competitive producer

A. At a product price of $55 will this firm produce in the short run? Yes or No. Explain, If it is preferable to produce, what will be the profit-maximizing or loss-minimizing output?

What economic profit or loss will the firm realize per unit of output?

B. Answer the question of A above assuming product price is $20.

C. Answer the question of A above assuming product price is $29.

D. In the table below, complete the short-run supply schedule for the firm in column 1 and for the industry supply schedule in column 4 and indicate the profit or loss incurred at each output in column 3.

1 2 3 4
Price Quantity Supplied Single Firm Profit (+) or loss Quantity Supplied 2000 Firms
$18


$20


$29


$38


$55


$74


Suppose the market demand data for the product are as follows:

Price Total Quantity Demanded
$18 30,000
$20 22,000
$29 19,000
$38 12,000
$55 9,000
$74 6,000

What will be the equilibrium price? What will be the equilibrium output for the industry? For each firm! What will profit or loss be per unit? Per firm! Will the industry expand or contract in the long run? Explain




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Microeconomics) Materials
How does productivity affect a country's standard of living? What is the relationship between money supply and inflation? Explain marginal benefit. What is the "invisible hand
How to do decision under uncertainty question         (Consider First Order Stochastic Dominance (FOSD) as a criterion for choice under uncertainty.For each axiom in (a) ,
Clarissa's utility function is U(r, z) = z + 160r - r^2, where r is the number of rose plants she has in her garden and z is the number of zinnias.  She has 250 square feet to
A price ceiling is: the minimum legal price that a firm can charge. the maximum legal price that a firm can charge. Above the competitive equilibrium price and equal to the co
A theater that shows the same movie to large families and to individuals and couples. (Hint: For which set of people will the overall expense of a movie be a larger part of
The number of firms in a market will be determined by A.        Whether or not there is a minimum wage B.        The most efficient quantity for cost of production for one f
In the context of fiscal policy and with reference to the multiplier, describe why a given dollar amount of direct government expenditures (G) yields more fiscal stimulus than
Identify the company's corresponding organizational structure and IHR strategy with clear reference and make appropriate use of the key terms and models for understanding MN