Consider the Following Table of Numbers,which Represents Demand and Cost

question 170

Essay

Consider the following table of numbers,which represents demand and cost conditions for a competitive firm.The price of the product this firm produces is $50.
(a)Fill in the missing values.
(b)What level of output should the firm produce? Why?
(c)What do you predict will happen to the number of firms in the industry? Why?
(d)What do you predict will happen to supply and the market price?

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Definitions:

Work In Process

Work in process are goods in various stages of production within a factory, not yet completed to become finished goods.

First-In, First-Out

An inventory valuation method where goods first purchased or produced are the first to be sold or used, assuming the earliest inventory costs flow out first.

Conversion Costs

Conversion costs are manufacturing or production costs that include direct labor and overhead expenses, necessary to convert raw materials into finished goods.

Equivalent Units

Equivalent units refer to a conversion measure used in cost accounting to express the amount of work done by manufacturers on units that are only partially completed at the end of an accounting period.