Asked by McKenzie Copher on Jul 22, 2024
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Answer the question on the basis of the following cost data for a firm that is selling in a purely competitive market: TotalProduct123456789101112AverageFixedCost$100.0050.0033.3325.0020.0016.6714.2912.5011.1110.009.098.33AverageVariableCost$17.0016.0015.0014.2514.0014.0015.7117.5019.4421.6024.0026.67 Average Total Marginal Cost Cost $117.00$1766.001548.331339.251234.001330.671430.002630.003030.553531.604133.094835.0056\begin{array}{c}\begin{array}{c}\\Total\\Product\\\hline1 \\2 \\3 \\4 \\5 \\6 \\7 \\8 \\9 \\10 \\11 \\12\end{array}\begin{array}{lll}Average\\Fixed\\Cost\\\hline \$ 100.00 \\ 50.00 \\ 33.33 \\ 25.00 \\ 20.00 \\16.67\\ 14.29 \\ 12.50 \\ 11.11 \\ 10.00 \\ 9.09 \\ 8.33 \\\end{array}\begin{array}{lll}Average\\Variable\\Cost\\\hline \$ 17.00 \\ 16.00 \\ 15.00 \\ 14.25 \\ 14.00 \\ 14.00 \\15.71\\ 17.50 \\19.44 \\ 21.60 \\ 24.00 \\ 26.67 \end{array}\begin{array}{ccc}\text { Average }\\\text { Total } &&\text { Marginal }\\\text { Cost }&&\text { Cost }\\\hline \$ 117.00 & & \$ 17 \\66.00 & & 15 \\48.33 & & 13 \\39.25 & & 12 \\34.00 & & 13 \\30.67 & & 14 \\30.00 & & 26 \\30.00 & & 30 \\30.55 & & 35 \\31.60 & & 41 \\33.09 & & 48 \\35.00 & & 56\end{array}\end{array}TotalProduct123456789101112AverageFixedCost$100.0050.0033.3325.0020.0016.6714.2912.5011.1110.009.098.33AverageVariableCost$17.0016.0015.0014.2514.0014.0015.7117.5019.4421.6024.0026.67 Average Total Cost $117.0066.0048.3339.2534.0030.6730.0030.0030.5531.6033.0935.00 Marginal Cost $171513121314263035414856 Refer to the data.Which of the following is the firm's short-run supply schedule?
A)
Price Qs$50124210368328206130\begin{array}{cc}\text { Price } & Q_{s} \\\hline \$ 50 & 12 \\42 & 10 \\36 & 8 \\32 & 8 \\20 & 6 \\13 & 0\end{array} Price $504236322013Qs12108860
B)
Price Qs$50124211369328206135\begin{array}{cc}\text { Price } & Q_{s} \\\hline \$ 50 & 12 \\42 & 11 \\36 & 9 \\32 & 8 \\20 & 6 \\13 & 5\end{array} Price $504236322013Qs12119865
C)
Price Qs$50114210369328206130\begin{array}{cc}\text { Price } & Q_{s} \\\hline \$ 50 & 11 \\42 & 10 \\36 & 9 \\32 & 8 \\20 & 6 \\13 & 0\end{array} Price $504236322013Qs11109860
D)
Price Qs$50114210369328206135\begin{array} { c c } \text { Price } & Q _ { s } \\\hline \$ 50 & 11 \\42 & 10 \\36 & 9 \\32 & 8 \\20 & 6 \\13 & 5\end{array} Price $504236322013Qs11109865
Short-Run Supply
The quantity of goods a firm is willing and able to supply to the market at different price levels in a short-term period, typically assuming some inputs are fixed.
Average Fixed Cost
The fixed costs of production (those that do not change with the level of output) divided by the quantity of output produced. It decreases as production increases.
Total Product
The total quantity of output produced by a firm over a given period as a result of inputs.
- Comprehend the correlation between price, average cost, and marginal cost within the context of short-term supply choices.
- Understand the immediate supply curve for a purely competitive producer and the elements that determine it.
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Learning Objectives
- Comprehend the correlation between price, average cost, and marginal cost within the context of short-term supply choices.
- Understand the immediate supply curve for a purely competitive producer and the elements that determine it.
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