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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.
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! What will profit or loss be per unit? Per firm! Will the industry expand or contract in the long run? Explain
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Uncertain according to economic principles.
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