Question

In: Economics

Assume that a firm in perfectly competitive industry has the following total cost schedule: Q TC...

Assume that a firm in perfectly competitive industry has the following total cost schedule:

Q

TC

10

110

15

150

20

180

25

225

30

300

35

385

40

480
  1. Calculate the marginal cost and average cost schedule for the firm.
  2. If the prevailing market price is $17 per unit, how many units will be produced and sold?  What at the profits per unit? What are the total profits?
  3. Is the industry in long-run equilibrium at this price?

Solutions

Expert Solution

Rahul Sunny answered 2 years ago
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