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April 9, 2021

6 Assume that the following cost data

General Questions

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

QUES 1. Now assume that there are 1,500 identical firms in this competitive industry; that is, there are 1,500 firms, each of which has the cost data shown in the table. Complete the industry supply schedule (column 4 in the table above).

QUES 2.Suppose the market demand data for the product are as follows:

QUES 3.What will be the equilibrium price?

QUES 4.What will be the equilibrium output for the industry?

QUES 5.Will this industry expand or contract in the long run?

QUES 6. What will profit or loss be per unit?

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