A firm in a perfectly competitive industry is currently producing 1,400 units per day at atotal cost of $450. If the firm produced 1,200 units per day, its total cost would be $300,and if it produced 900 units per day, its total cost would be $275.Instructions: In parts a and c, round your answers to 2 decimal places. In part d, roundyour answer to 1 decimal place.a. What are the firm's ATC per unit at these three levels of production?At 1,400 units per day, ATC = $0At 1,200 units per day, ATC = $0At 900 units per day, ATC = $Cb. If every firm in this industry has the same cost structure, is the industry in long-runcompetitive equilibrium? (Click to select)c. From what you know about these firms' cost structures, what is the highest possibleprice per unit that could exist as the market price in long-run equilibrium?d. If the price in part c ends up being the market price and if the normal rate of accountingprofit is 10 percent, then how big will each firm's accounting profit per unit be?per unit.cents

"According to the guidelines, solution is provided to the first three sub-parts:" a) "Average total…

A firm in a perfectly competitive industry is currently producing 1,400 units per day at a total cost of $450. If the firm produced 1,200 units per day, its total cost would be $300, and if it produced 900 units per day, its total cost would be $275. Instructions: In parts a and c, round your answers to 2 decimal places. In part d, round your answer to 1 decimal place. a. What are the firm's ATC per unit at these three levels of production? At 1,400 units per day, ATC = $0 %3D At 1,200 units per day, ATC = $0 At 900 units per day, ATC = $0 b. If every firm in this industry has the same cost structure, is the industry in long-run competitive equilibrium? (Click to select)| c. From what you know about these firms' cost structures, what is the highest possible price per unit that could exist as the market price in long-run equilibrium? $C d. If the price in part c ends up being the market price and if the normal rate of accounting profit is 10 percent, then how big will each firm's accounting profit per unit be? per unit. cents

A firm in a perfectly competitive industry is currently producing 1,400 units per day at a total cost of $450. If the firm produced 1,200 units per day, its total cost would be $300, and if it produced 900 units per day, its total cost would be $275. Instructions: In parts a and c, round your answers to 2 decimal places. In part d, round your answer to 1 decimal place. a. What are the firm's ATC per unit at these three levels of production? At 1,400 units per day, ATC = $0 %3D At 1,200 units per day, ATC = $0 At 900 units per day, ATC = $0 b. If every firm in this industry has the same cost structure, is the industry in long-run competitive equilibrium? (Click to select)| c. From what you know about these firms' cost structures, what is the highest possible price per unit that could exist as the market price in long-run equilibrium? $C d. If the price in part c ends up being the market price and if the normal rate of accounting profit is 10 percent, then how big will each firm's accounting profit per unit be? per unit. cents

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: The Cost Of Production

Section12.3: The Various Measures Of Cost

Problem 3QQ

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