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Profit Maximization

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A-Complete the short-run supply schedule for the firm (columns 1 and 2) and indicate the profit or loss incurred at each output (column 3)

1 2 3 4
Price Quantity Supplied Profit(+) Quantity Supplied
Single Firm or Loss(-) 1500 Firms
$26
32
38
41
46
56
66

b-Now assume that there are 1500 identical firms in this competitive industry: that is, there are 1500 firms, each of which has the cost data shown in the table. Complete the industry supply schedule (column 4)

See attached file for full problem description.

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https://brainmass.com/economics/output-and-costs/profit-maximization-122572

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Solution Preview

Please see the attached file.

Total Average Average Average Marginal
Product Fixed Cost Variable Cost Total Cost Cost
0
1 $60.00 $45.00 $105.00 $45
2 30.00 42.50 72.50 40
3 20.00 40.00 60.00 35
4 ...

Solution Summary

The solution completes the short run supply schedule for the scenario given and also answers a number of other related questions.

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