If the market demand for paper remains the same as in Problem 6, calculate the market price, market output, and the economic profit or loss of each firm.

Problem 6

In Problem 5 , new technology decreases the  demand for paper. The following table sets out the  new demand schedule for paper.

If firms have the same costs set out in Problem 5 ,what is the market price and the firm’s economicprofit or loss in the short run?

Problem 5

The market for paper is perfectly competitiveand 1,000 firms produce paper. The table setsout the market demand schedule for paper.

The table in the next column sets out the costs ofeach producer of paper.Calculate the market price, the market output,the quantity produced by each firm, and thefirm’s economic profit or loss.