Assume that a firm in a perfectly competitive industry has the following total cost schedule: OUTPUT (UNITS)
Question:
OUTPUT (UNITS) TOTAL COST ($)
10 ............. $110
15 .............. 150
20 .............. 180
25 .............. 225
30 .............. 300
35 .............. 385
40 .............. 480
a. Calculate a marginal cost and an average cost schedule for the firm.
b. If the prevailing market price is $17 per unit, how many units will be produced and sold? What are profits per unit? What are total profits?
c. Is the industry in long-run equilibrium at this price?
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Related Book For
Managerial economics applications strategy and tactics
ISBN: 978-1439079232
12th Edition
Authors: James r. mcguigan, R. Charles Moyer, frederick h. deb harris
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