Assume the following cost data for a purely competitive producer:
a. at a product price of $56: will this firm produce in the short run? 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. at a product price of $41: will this firm produce in the short run? 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?
c. at a product price of $32: will this firm produce in the short run? 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?
d. in the table below, complete the short-run supply schedule for the firm and indicate the profit or loss incurred at each output.
e. now assume that there are 1500 identical firms in this competitive industry; that is, there are 1500 firms, each of which has the cost data shown in the table. complete the industry supply schedule (column 4 in table above).
f. suppose the market demand data for the product is 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 this industry expand or contract in the long run?