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

Calculate the marginal cost and average cost schedule for the firm.
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?
Is the industry in long-run equilibrium at this price?

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Expert Solution

Rahul Sunny answered 1 year ago

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