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    The Costs of Production

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    Full Description: for the data below, I have to solve the problems, create problems similiar, and write a paper based on the data and use this as a study guide. I calculated these problems myself but wanted to get them done as to double check them since a lot of different parts of a large assignment is based off of the first steps.

    Assume that the following cost data are for a purely competitive producer:

    Total Product AFC AVC ATC MC
    0 - - - -
    1 $60 $45 $105 45
    2 30 42.50 72.50 40
    3 20 40 60 35
    4 15 37.5 52.50 30
    5 12 37 49 35
    6 10 38.57 47.50 40
    7 8.57 38.57 47.14 45
    8 7.5 40.63 48.13 55
    9 6.67 43.33 50 65
    10 6 46.50 52.5 75

    Question 1: At product price $56, will this firm produce in the short run? Why or Why not? If it is going to produce, what will be the profit-maximizing or loss-minimizing output? Explain. What economic profits or losses will the firm realize?
    Question 2: repeat question 1 changing the product price to $41 and $32.

    2nd part:
    Question 1: in the table below, complete the short run supply schedule for the firm (column 2) and indicate the profits/losses (column 3) at each price/output:

    (1) (2) (3) (4)
    Price Quanity Profits(+) Total Quantity
    (Market) Supplied or losses (-) Demanded
    $26 17,000
    $32 15,000
    $38 13,500
    $41 12,000
    $46 10,500
    $56 9,500
    $66 8,000

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    https://brainmass.com/economics/demand-supply/the-costs-of-production-81712

    Solution Preview

    Full Description: for the data below, I have to solve the problems, create problems similiar, and write a paper based on the data and use this as a study guide. I calculated these problems myself but wanted to get them done as to double check them since a lot of different parts of a large assignment is based off of the first steps.

    Assume that the following cost data are for a purely competitive producer:

    Total Product AFC AVC ATC MC
    0 - - - -
    1 $60 $45 $105 45
    2 30 42.50 72.50 40
    3 20 40 60 35
    4 15 37.5 52.50 30
    5 12 ...

    Solution Summary

    The Costs of Production are depicted.

    $2.19