Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Business Economics Expert

Compute product equilibrium price, output and profit.

Suppose a single company in a purely competitive company has variable costs as indicated in the subsequent table in column 2. Complete the table and answer the problems.

(1) Total product

(2)

Total var. cost

(3) Total  cost

(4)AFC

(5) AVC

(6) ATC

(7) MC

0

$    0

$   40

$_____

$_____

$_____

 

1

55

_____

_____

_____

_____

$_____

2

75

_____

_____

_____

_____

_____

3

90

_____

_____

_____

_____

_____

4

110

_____

_____

_____

_____

_____

5

135

_____

_____

_____

_____

_____

6

170

_____

_____

_____

_____

_____

7

220

_____

_____

_____

_____

_____

8

290

_____

_____

_____

_____

_____

a) At a product price of $52, will this company capable to produce in the short run?  describe.  Illustrate what will its profit or loss is?

b) At a product price of $28, will this company capable to produce in the short run?  describe.  Illustrate what will its profit or loss is?

c) At a product price of $22, will this company capable to produce in the short run?  describe.  Illustrate what will its profit or loss is?

d) Complete the subsequent short-run supply schedule for this company.

Product 

Quantity

Profit (+)

   price   

supplied

  or loss (-)  

$72

_____

_____

52

_____

_____

45

_____

_____

28

_____

_____

22

_____

_____

15

_____

_____

Suppose there are 500 identical companies in this company, which they have identical cost data as the company above, and which the company demand schedule is as follows:

                        Price 

Quantity demanded

$72

2500

52

3500

45

4000

28

5200

22

5900

15

6700

e)Illustrate what will the equilibrium price be?

f)Illustrate what will the equilibrium output for each company be?

g)Illustrate what will profit or loss be per unit?

h)Illustrate what will profit or loss be per company?

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M917226

Have any Question? 


Related Questions in Business Economics

Hannah and sam run moretown makeovers a home remodeling

Hannah and Sam run Moretown Makeovers, a home remodeling business. The number of square feet they can remodel in a week is described by the Cobb-Douglas production function Q = F(L,K) = 10L0.5K0.5, where L is their numbe ...

Suppose in the united states one worker can produce 10 tons

Suppose in the United States, one worker can produce 10 tons of steel per day or 20 tons of chemicals per day. In the United Kingdom, one worker can produce 5 tons of steel per day or 15 tons of chemicals per day. The Un ...

Bloominrsquo brandsoutback steakhousecarrabbarsquos italian

Bloomin’ Brands Outback Steakhouse Carrabba’s Italian Grill Roy’s Restaurant (Hawaiian fusion cuisine) Bonefish Grill (market-fresh fine seafood) Flemings Prime Steakhouse and Wine Bar L’Oreal Maybelline, Lancome, Helena ...

1 what are the strengths and weaknesses of using a gantt

1. What are the strengths and weaknesses of using a Gantt chart for representing a project plan? How about a Network diagram and a PERT diagram? When they should be used ? Is one method "better" than the other? Should we ...

As the drivers of globalization continue to pressure both

As the drivers of globalization continue to pressure both the globalization of markets and the globalization of production, we continue to see the impact of greater globalization on worldwide trade patterns. HSBC, a larg ...

Fiberia accessories a clothing retailer is planning to

Fiberia Accessories, a clothing retailer, is planning to introduce a new line of sweaters as part of the winter collection for $65 with an inventory of 1500. The main selling season is 60 days between November and Decemb ...

Vulcan can produce 15 tons of macadamia nuts if it produces

Vulcan can produce 15 tons of macadamia nuts if it produces no bananas or 30 tons of bananas if it produces no macadamia nuts. Part 1: Use the line drawing tool to draw the linear production possibilities frontier that i ...

In a study of salary discrimination in a company data are

In a study of salary discrimination in a company, data are collected on the monthly salary and the characteristics of the employees. A regression model is specified with monthly salary Y as the dependent variable and gen ...

The chinese government managed the value of the chinese

The Chinese government managed the value of the chinese yuan relative to the US.between 1995 -2005 the yuan was pegged to the dollar at a rate of 8.28 yuan per US. China's central bank is responsible for using monetary p ...

The bf goodrich co decided to close one of its plants it

The B.F. Goodrich Co. decided to close one of its plants. It offered to pay a 10% bonus to any employee who continued to work in the plant until it closed. Maude Miami was employed at the existing plant; she knew of the ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate