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lease solve these 3 questions. 1. If the firm is making a positive profit, do you expect it to persist in the long run? Why? 2. What is the lowest possible price the firm would be willing to sell for in the short run? 3. What is the lowest possible price the firm would be willing to sell for in the long run?

lease solve these 3 questions. 1. If the firm is making a positive profit, do you expect it to persist in the long run? Why? 2. What is the lowest possible price the firm would be willing to sell for in the short run? 3. What is the lowest possible price the firm would be willing to sell for in the long run?

Essentials of Economics (MindTap Course List)
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter12: The Cost Of Production
Section: Chapter Questions
Problem 7PA
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Please solve these 3 questions.
1. If the firm is making a positive profit, do you expect it to persist in the long run? Why?
2. What is the lowest possible price the firm would be willing to sell for in the short run?
3. What is the lowest possible price the firm would be willing to sell for in the long run?

Use the cost schedule below to answer the following questions about a price-taking firm who produces discrete units (there cannot be a half-computer in this world). ATC is average total cost, AVC is average variable cost and AFC is average fixed cost. Computers per Day Fixed Cost Variable Cost Total Cost Marginal Cost ΑTC AVC AFC Price $30 $0 $30 $35 1 $30 $20 $50 $ 20 $ 50 $ 20 $ 30 $ 35 $ 10 $ 30 $ 15 $ 15 $ 35 $30 $30 $30 $40 $ 23. 3 $ 13.3 $ 10 $10 $90 $120 $ 160 $210 $270 $340 $ 420 3 $ 35 $10 $ 20 $ 30 $40 $ 50 $60 $70 $30 $60 $ 22. 5 |$ 15 $75 $ 35 $ 4 $ 18 $ 6 *5 $30 $90 $ 35 |$ 26.6 † 21.6 $ 30 $ 25.j $ 4.28- $ 35 $ 39. 75 $ 30 $ 3.75 $ 35 $30 $130 $ 35 $30 $180 $30 $240 $30 $310 $ 37.7 $34. 4 ¢ 3. 3 $ 35 $30 $390 $ 80 $42 $ 39 $ 3 $ 35 10
Transcribed Image Text:Use the cost schedule below to answer the following questions about a price-taking firm who produces discrete units (there cannot be a half-computer in this world). ATC is average total cost, AVC is average variable cost and AFC is average fixed cost. Computers per Day Fixed Cost Variable Cost Total Cost Marginal Cost ΑTC AVC AFC Price $30 $0 $30 $35 1 $30 $20 $50 $ 20 $ 50 $ 20 $ 30 $ 35 $ 10 $ 30 $ 15 $ 15 $ 35 $30 $30 $30 $40 $ 23. 3 $ 13.3 $ 10 $10 $90 $120 $ 160 $210 $270 $340 $ 420 3 $ 35 $10 $ 20 $ 30 $40 $ 50 $60 $70 $30 $60 $ 22. 5 |$ 15 $75 $ 35 $ 4 $ 18 $ 6 *5 $30 $90 $ 35 |$ 26.6 † 21.6 $ 30 $ 25.j $ 4.28- $ 35 $ 39. 75 $ 30 $ 3.75 $ 35 $30 $130 $ 35 $30 $180 $30 $240 $30 $310 $ 37.7 $34. 4 ¢ 3. 3 $ 35 $30 $390 $ 80 $42 $ 39 $ 3 $ 35 10
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