Question: Assume that the cost data in the top table of the next column are for a purely competitive producer:

1. At a product price of $56, will this firm produce in the short run? If it is preferable to produce, what will be the profit-maximizing or loss-minimizing output? What economic profit or loss will the firm realize per unit of output?
2. Answer the questions of part a assuming product price is $41.
3. Answer the questions of 4 assuming product price is $32.
4. In the table below, 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).

Price: $2.99

Solution: The downloadable solution consists of 2 pages
Deliverable: Word Document