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Assume the following cost data are for a purely competitive producer. Total Product Average Fixed Cost Average Variable Cost Average Total Cost Marginal Cost 0 $0.00 $0.00 $0.00 na 1 $60.00 $45.00 $105.00 $45 2 30.00 42.50 72.50 40 3 20.00 40.00 60.00 35 4 15.00 37.50 52.50 30 5 12.00 37.00 49.00 35 6 10.00 37.50 47.50 40 7 8.57 38.57 47.14 45 8 7.50 40.63 48.13 55 9 6.67 43.33 50.00 65 10 6.00 46.50 52.50 75 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 $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? output = units per firm output = units per firm output = units per 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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