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






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

Ask Question & Get Answers from Experts
Browse some more (Microeconomics) Materials
The only two consumers in an exchange economy, consumer A and consumer B, consume the only two goods, X and Y, in the economy. There are 20 units of X available and 20 un
Suppose that in the hypothetical country of Vanadia, picture frames are distributed based on government policy. This system of distributing goods gives the residents of Vanadi
Describe how the circular flow diagram illustrates the interaction of households, governments, and business and Describe the relationship between market and aggregate supply a
Explain the logic underlying the law of one price and the theory of purchasing power parity. How will a decrease in the federal government's budget deficit affect the equilibr
In 2011, the price of peanuts was rising, which lead peanut butter sellers and peanut butter buyers to expect the price of peanut butter would rise in the future. Suppose the
Which of the following is most commonly used to monitor short-run changes in economic activity - If expected inflation is constant, then when the nominal interest rate increas
You just borrowed $225,00 to purchase a new house. The nominal interest rate is 6% p.a, compounded monthly, and the monthly payment is $1612 for the loan. What is the duration
A consumer receives income y in the current period, income y in the future period, and pays taxes t and t' in the current and future periods, respectively. The consumer can le