Answer the question on the basis of the following cost data for a firm that is selling in a purely competitive market: T o t a l P r o d u c t 1 2 3 4 5 6 7 8 9 10 11 12 A v e r a g e F i x e d C o s t $ 100.00 50.00 33.33 25.00 20.00 16.67 14.29 12.50 11.11 10.00 9.09 8.33 A v e r a g e V a r i a b l e C o s t $ 17.00 16.00 15.00 14.25 14.00 14.00 15.71 17.50 19.44 21.60 24.00 26.67 Average Total Marginal Cost Cost $ 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 \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} ext { Average }\ ext { Total } & & ext { Marginal }\ ext { Cost } & & ext { 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} T o t a l P ro d u c t 1 2 3 4 5 6 7 8 9 10 11 12 A v er a g e F i x e d C os t $100.00 50.00 33.33 25.00 20.00 16.67 14.29 12.50 11.11 10.00 9.09 8.33 A v er a g e Va r iab l e C os t $17.00 16.00 15.00 14.25 14.00 14.00 15.71 17.50 19.44 21.60 24.00 26.67 Average Total Cost $117.00 66.00 48.33 39.25 34.00 30.67 30.00 30.00 30.55 31.60 33.09 35.00 Marginal Cost $17 15 13 12 13 14 26 30 35 41 48 56 Refer to the data.Which of the following is the firm's short-run supply schedule?A) Price Q s $ 50 12 42 10 36 8 32 8 20 6 13 0 \begin{array}{cc} ext { Price } & Q_{s} \\hline \$ 50 & 12 \42 & 10 \36 & 8 \32 & 8 \20 & 6 \13 & 0\end{array} Price $50 42 36 32 20 13 Q s 12 10 8 8 6 0 B) Price Q s $ 50 12 42 11 36 9 32 8 20 6 13 5 \begin{array}{cc} ext { Price } & Q_{s} \\hline \$ 50 & 12 \42 & 11 \36 & 9 \32 & 8 \20 & 6 \13 & 5\end{array} Price $50 42 36 32 20 13 Q s 12 11 9 8 6 5 C) Price Q s $ 50 11 42 10 36 9 32 8 20 6 13 0 \begin{array}{cc} ext { Price } & Q_{s} \\hline \$ 50 & 11 \42 & 10 \36 & 9 \32 & 8 \20 & 6 \13 & 0\end{array} Price $50 42 36 32 20 13 Q s 11 10 9 8 6 0 D) Price Q s $ 50 11 42 10 36 9 32 8 20 6 13 5 \begin{array} { c c } ext { Price } & Q _ { s } \\hline \$ 50 & 11 \42 & 10 \36 & 9 \32 & 8 \20 & 6 \13 & 5\end{array} Price $50 42 36 32 20 13 Q s 11 10 9 8 6 5

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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:   T o t a l P r o d u c t 1 2 3 4 5 6 7 8 9 10 11 12 A v e r a g e F i x e d C o s t $ 100.00 50.00 33.33 25.00 20.00 16.67 14.29 12.50 11.11 10.00 9.09 8.33 A v e r a g e V a r i a b l e C o s t $ 17.00 16.00 15.00 14.25 14.00 14.00 15.71 17.50 19.44 21.60 24.00 26.67  Average   Total   Marginal   Cost   Cost  $ 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 \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}	ext { Average }\	ext { Total }  & & 	ext { Marginal }\	ext { Cost } & & 	ext { 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} T o t a l P ro d u c t 1 2 3 4 5 6 7 8 9 10 11 12 ​ ​ A v er a g e F i x e d C os t $100.00 50.00 33.33 25.00 20.00 16.67 14.29 12.50 11.11 10.00 9.09 8.33 ​ ​ A v er a g e Va r iab l e C os t $17.00 16.00 15.00 14.25 14.00 14.00 15.71 17.50 19.44 21.60 24.00 26.67 ​ ​  Average   Total   Cost  $117.00 66.00 48.33 39.25 34.00 30.67 30.00 30.00 30.55 31.60 33.09 35.00 ​ ​  Marginal   Cost  $17 15 13 12 13 14 26 30 35 41 48 56 ​ ​ ​   Refer to the data.Which of the following is the firm's short-run supply schedule?A)  Price  Q s $ 50 12 42 10 36 8 32 8 20 6 13 0 \begin{array}{cc}	ext { Price }  &  Q_{s} \\hline \$ 50  &  12 \42  &  10 \36  &  8 \32  &  8 \20  &  6 \13  &  0\end{array}  Price  $50 42 36 32 20 13 ​ Q s ​ 12 10 8 8 6 0 ​ ​ B)  Price  Q s $ 50 12 42 11 36 9 32 8 20 6 13 5 \begin{array}{cc}	ext { Price }  &  Q_{s} \\hline \$ 50  &  12 \42  &  11 \36  &  9 \32  &  8 \20  &  6 \13  &  5\end{array}  Price  $50 42 36 32 20 13 ​ Q s ​ 12 11 9 8 6 5 ​ ​ C)  Price  Q s $ 50 11 42 10 36 9 32 8 20 6 13 0 \begin{array}{cc}	ext { Price }  &  Q_{s} \\hline \$ 50  &  11 \42  &  10 \36  &  9 \32  &  8 \20  &  6 \13  &  0\end{array}  Price  $50 42 36 32 20 13 ​ Q s ​ 11 10 9 8 6 0 ​ ​ D)  Price  Q s $ 50 11 42 10 36 9 32 8 20 6 13 5 \begin{array} { c c } 	ext { Price }  &  Q _ { s } \\hline \$ 50  &  11 \42  &  10 \36  &  9 \32  &  8 \20  &  6 \13  &  5\end{array}  Price  $50 42 36 32 20 13 ​ Q s ​ 11 10 9 8 6 5 ​ ​

Tiffany Acree · Accepted Answer

Final Answer : C, Explanation :  In a purely competitive market, a firm's short-run supply schedule is determined by the point at which the price is equal to or greater than the marginal cost (MC). Starting from the bottom of the MC column, the first price that equals or exceeds MC determines the quantity supplied (Qs). For example, at a price of $13, the MC is $17 for the first unit, so the firm would not supply any units because the price doesn't cover the MC. As the price increases, the firm begins to supply more units when the price equals or exceeds the MC for additional units. The correct supply schedule must match these conditions, which option C does accurately.

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