38. Assume that the cost data in the following table are for a purely competitive producer: Total Product 0 Average Fixed Cost Average Variable Cost Average Total Cost Marginal Cost 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 15.00 37.50 52.50 30 5 12.00 37.00 49.00 35 6 10.00 37.50 47.50 40 7 8.57 38.57 47.14 45 8 7.50 40.63 48.13 55 9 6.67 43.33 50.00 65 10 6.00 46.50 52.50 75 a. At a market price of $56, how many units will this firm produce in the short run? b. At a market price of $41, how many units will this firm produce in the short run? c. At a market price of $32, how many units will this firm produce in the short run? 39. Explain why the marginal cost curve above AVC, is the short run supply curve for an individual firm in a perfectly competitive market.
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At a market price of $56, the firm will produce 6 units in the short run. Show more…
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Fill in the blanks in the table below. The problem is a "puzzle," so the blanks are not necessarily filled in sequentially. (Hint: Determine the total fixed cost first.) Instructions: Enter your answers rounded to two decimal places. Output | Total Variable Cost | Average Fixed Cost | Average Total Cost | Marginal Cost | Total Cost S5.00 | 59.82 | 59.82 | S14.82 | 519.30 S12.15 | 511.15 | 59.48 | 524.30 | 533.44 S1.67 | S1.25 | S1.00 | 537.27 | 545.80 S10.57 | S10.16 | 58.83 | 542.27
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Fill in the blanks in the table below. The problem is a "puzzle" so the blanks are not necessarily filled in sequentially. Hint: Determine the total fixed cost first. Instructions: Round your answers to 2 decimal places.
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If at its current production level, a perfectly competitive firm's marginal revenue and long-run marginal cost are equal to $0.50 and its long-run average cost is $0.35, which of the following statements is true? A. The firm should expect the market price of its product to fall. B. The firm should expect to earn positive economic profit indefinitely. C. The firm should expect the market supply curve to decrease. D. The firm should expect the market price of its product to increase.
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