4. A firm in a purely competitive industry is currently producing 1, 500 units per day at a total cost of $500. If the firm produced 1,000 units per day, its total cost would be $310, and if it produced 500 units per day, its total cost would be $175. a. What are the firm's ATC at these three levels of production? i. At 1,500 units per day, ATC = $. ii. At 1,000 units per day, ATC = S. ll. At 500 units per day, ATC = S. b. If all firms have the same cost structure, what is the highest possible price per unit that could exist as the market price in long-run equilibrium?

4. A firm in a purely competitive industry is currently producing 1, 500 units per day at a total cost of $500. If the firm produced 1,000 units per day, its total cost would be $310, and if it produced 500 units per day, its total cost would be $175. a. What are the firm's ATC at these three levels of production? i. At 1,500 units per day, ATC = $. ii. At 1,000 units per day, ATC = S. ll. At 500 units per day, ATC = S. b. If all firms have the same cost structure, what is the highest possible price per unit that could exist as the market price in long-run equilibrium?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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