Suppose that each firm in a competitive industry has the following costs: TC 502 Total Cost Marginal Cost: MC q where q is an individual firm's quantity produced The market demand curve for this product is: Demand Qp 120 P where Pis the price and Q is the total quantity of the good. S50 Each firm's fixed cost is What is each firm's variable cost? 50+q O q 1 Which of the following represents the equation for each firm's average total cost? 50 O 50 O 50 Complete the following table by computing the marginal cost and average total cost for q from 5 too 15. Marginal Cost Average Total Cost q (Dollars) (Dollars) (Units) 5 5 12.50 6 6 11.33 7 7 10.64 8 8 10.25 9 10.06 9 10 10 10.00 11 11 10.05 12 10.17 12 13 10.35 13 14 14 10.57 15 15 10.83 The average total cost is at its minimum when the quantity each firm produces (q) equals 10 Which of the following represents the equation for each firm's supply curve in the short run? O50 q O 120 10 In the long run, the firm will remain in the market and produce if q Currently, there are 14 firms in the market. In the short run, in which the number of firms is fixed, the equilibrium price is and the total quantity produced in the market is units. Each firm produces units. (Hint: Total supply in the market equals the nu mber of firms times the quantity supplied by each firm.) In this equilibrium, each firm makes a profit of S (Note: Enter a negative number if the firm is incurring a loss.) Firms have an incentive to the market. In the long run, with free entry and exit, the equilibrium price is and the total quantity produced in the market is units. There firms in the market, with each firm producing units.