Answer the following questions: a. Assume that a perfectly competitive firm has a given price of...

 

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Answer the following questions: a. Assume that a perfectly competitive firm has a given price of $10 per unit and at that level their average variable cost is $8 and their average total cost is $12. What will be your advise to this firm if they want to make decisions in the short-run and in the long-run? Make sure to provide the reasoning with your response b. A firm is able to bring down their long-run average total cost by increasing their output further. What kind of scale this firm is experiencing and why? Think about the three scalles in the long-run as discussed in chapter 14 c. A perfectly competitive firm is currently producing 10 units and at that level their marginal revenge is $15 and their marginal cost is $13. What will be your advice to this firm and why? Note: Make sure to provide sufficient reasoning. Answer the following questions: a. Assume that a perfectly competitive firm has a given price of $10 per unit and at that level their average variable cost is $8 and their average total cost is $12. What will be your advise to this firm if they want to make decisions in the short-run and in the long-run? Make sure to provide the reasoning with your response b. A firm is able to bring down their long-run average total cost by increasing their output further. What kind of scale this firm is experiencing and why? Think about the three scalles in the long-run as discussed in chapter 14 c. A perfectly competitive firm is currently producing 10 units and at that level their marginal revenge is $15 and their marginal cost is $13. What will be your advice to this firm and why? Note: Make sure to provide sufficient reasoning.

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a A perfectly competitive firm that is currently producing at a price of 10 per unit and has an aver... View the full answer