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# Quantity Total Cost Ivar bar Cost 0. ---- 1 1 8 2. 2 5.5 3 3... Quantity Total Cost Ivar bar Cost 0. ---- 1 1 8 2. 2 5.5 3 3 4 5 5 4 5 5 5.2 6 6 5.5 7 7 5.9 8 Price Quantity Supplied 1 3 5 7 8 1. If price is 5 what is quantity supplied? 2. If price is 7 what is quantity supplied? 3. Find the firm's profit if the price is 7 and the firm produces the profit- maximizing quantity. 4. If the market price is 7, is this market in a long run equilibrium? Explain why or why not. 5. If the current market price is 7, what do you expect to happen to the number of firms in this market?

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Answer #1

Answer

The marginal cost is the supply curve of the firm

Thus

 Price Qs 1 0 3 2 5 4 7 6 8 7

1. 4 units

2 6 units

3 15

when the price is 7 the firm will produce 6 units

Total cost 6 units = 2+3+4+5+6+7 = 27

Total revenut = 6 * 7 = 42

Profit = 42 - 27 = 15

4 No it is not, in long term equilibirum the firm will earn zero economic profit

(First four question answered as per Chegg's policy. Please consier giving an upvote if you find it useful)

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