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Short-Run Firm Supply

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Mankato paper, inc., produces uncoated paper used ina wide variety of industrical applications. Newsprint, a major product, is sold in a perfectly competitive market. The following relation exists between the firm'snewsprintout and total production costs:

Total Output (tons) Total cost
0 $25
1 75
2 135
3 205
4 285
5 375
6 475
7 600

A. Construct a table showing Mankato's marginal cost of newsprint production.
B. What is the minimum price necessary for Mankato to supply one ton of newsprint?
C. How much newsprint would Mankato supply at industry prices of $75 and $100 per ton?

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Answer A:
Total Output (tons) Total cost Marginal Cost
0 $25 0
1 75 50
2 ...

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