Assuming that a firm in a perfect competitive industry has the following total costs schedule:
Output Total Cost
10 ........... 110
15 ........... 150
20 ........... 180
25 ........... 225
30 ........... 300
35 ........... 385
........... 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 long0run equilibrium at this price?