A) At a product price of $56, will this firm produce in the short-run? If it is preferable to produce, what will be the profit-maximizing or loss-minimizing out? What economic profit or loss will the firm realize per unit of output?
B) Answer the questions of 4a assuming product price is $41.
C) Answer the question of 4a assuming product price is $32
D) In the table below, complete the short-run supply schedule for the firm (column 1 and 2) and indicate the profit or loss incurred at each out (column 3).
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This solution shows how to determine whether a firm will choose to produce or shut down in the short run. Then, assuming the firm to be typical of all the firms in the industry, the solution shows how to determine the industry's supply schedule.