The following problem traces the relationship between firm decisions, market supply, and market equilibrium in a...
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The following problem traces the relationship between firm decisions, market supply, and market equilibrium in a perfectly competitive market. Complete the cost table below. (Round your responses to two decimal places.) q 0 1 2 3 4 5 6 7 8 9 10 TFC $500 500 500 500 500 500 500 500 500 500 500 Price $0 16 30 44 59 74 86 99 TVC $0 75 117 145 159 187 229 285 355 439 537 TC $ 500 575 617 AVC 0 - 75 575 58.5 308.5 645 48.3 215 659 39.75 164.75 687 37.4 137.4 121.5 729 38.16 785 40.71 112.14 855 44.37 106.88 939 48.77 104.33 1037 53.7 103.7 OD☐☐ ATC Using the information in the table, fill in the following supply schedule for this individual firm under perfect competition and indicate profit (positive, zero, or negative) at each output level. (Hint: At each hypothetical price, what is the MR of producing 1 more unit of output? Combine this with the MC of another unit to figure out the quantity supplied.) Quantity Supplied MC 75 42 28 14 28 42 56 70 84 98 Profit Negative Negative Negative ▼ ▼ V ▼ The following problem traces the relationship between firm decisions, market supply, and market equilibrium in a perfectly competitive market. Complete the cost table below. (Round your responses to two decimal places.) q 0 1 2 3 4 5 6 7 8 9 10 TFC $500 500 500 500 500 500 500 500 500 500 500 Price $0 16 30 44 59 74 86 99 TVC $0 75 117 145 159 187 229 285 355 439 537 TC $ 500 575 617 AVC 0 - 75 575 58.5 308.5 645 48.3 215 659 39.75 164.75 687 37.4 137.4 121.5 729 38.16 785 40.71 112.14 855 44.37 106.88 939 48.77 104.33 1037 53.7 103.7 OD☐☐ ATC Using the information in the table, fill in the following supply schedule for this individual firm under perfect competition and indicate profit (positive, zero, or negative) at each output level. (Hint: At each hypothetical price, what is the MR of producing 1 more unit of output? Combine this with the MC of another unit to figure out the quantity supplied.) Quantity Supplied MC 75 42 28 14 28 42 56 70 84 98 Profit Negative Negative Negative ▼ ▼ V ▼
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Answer The table is completed below Fixed cost remains unchanged at 500 TC ... View the full answer
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