# Assume the following cost data are for a purely competitive producer.TotalProductAverageFixed Cost AverageVariable Cost AverageTotal CostMarginal Cost0 \$0.00 \$0.00 \$0.00…

Assume the following cost data are for a purely competitive producer.

TotalProductAverageFixed Cost AverageVariable Cost AverageTotal CostMarginal Cost0 \$0.00 \$0.00 \$0.00 na1 \$60.00 \$45.00 \$105.00 \$452 30.00 42.50 72.50 403 20.00 40.00 60.00 354 15.00 37.50 52.50 305 12.00 37.00 49.00 356 10.00 37.50 47.50 407 8.57 38.57 47.14 458 7.50 40.63 48.13 559 6.67 43.33 50.00 6510 6.00 46.50 52.50 75

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Assume the following cost data are for a purely competitive producer.TotalProductAverageFixed Cost AverageVariable Cost AverageTotal CostMarginal Cost0 \$0.00 \$0.00 \$0.00…

Answer the questions in the first column in the table below for each of the prices listed at the top of each of the three columns, (a), (b), and (c).

Instructions: Round your answers to two decimal places. Select “Not applicable” and enter “0” for output if the firm does not produce.

(a)At a product price of \$56 (b)At a product price of \$41 (c)At a product price of \$32Will this firm produce in the short run?

If it is preferable to produce, what will be the profit-maximizing or loss-minimizing output?

output = unitsper firm

output = unitsper firm

output = unitsper firm What economic profit or loss will the firm realize per unit of output?

per unit = \$

per unit = \$

= \$

d. In the table below, complete the short-run supply schedule for the firm (columns 1 and 2) and indicate the profit or loss incurred at each output (column 3).

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