What economic profit or loss will the firm realize
Course:- Microeconomics
Reference No.:- EM131469689

Assignment Help
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
AccountantsWeBe, LLP has provided bookkeeping services to XYZ, Inc. for the past five years. Recently XYZ's bank told XYZ that they need financial statements with "assuranc
Reflect on your current company. In general, has productivity increased, decreased, or remained stagnant? Explain. Using items discussed in the materials, what is your compa
Why do comparisons of health care outcomes across countries often concentrate on measures such as life expectancy and infant mortality? Are there other measures of the quali
Evaluate the cash flow for each year relevant to the analysis. Make a table of cash flows, by year. Compute the net present value of the proposed outpatient clinic. Should the
Choose a basis for comparison and write a comparison of the approaches to the relationship between youth employment and the economy presented in "Can Generation Xers Be Trai
What is the negative consumption externality described in this quote? Show this externality on a correctly labelled demand and supply diagram for the petrol market.
The total relevant cost of holding inventory in a plant for purchased materials is given, TRC = (6000/Q)(60) PLUS 0.30(12)(Q/2) PLUS 6000(12) WHERE Q IS THE ECONOMIC ORDER Q
Personal possession of currency is prohibited in U.S. prisons, although, in practice, prisoners still exchange goods and services. U.S. prisoners used cigarettes as a med