A firm in a purely competitive industry is currently producing 1,400 units per day at a total cost of $500. If the firm produced 1,200 units per day, its total cost would be $350, and if it produced 900 units per day, its total cost would be $325. Instructions: Enter your answers rounded to two decimal places. a. What is the firm's ATC per unit at these three levels of production? At 1,400 units per day, ATC = $ At 1,200 units per day, ATC = $ At 900 units per day, ATC = $ 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? d. If that price ends up being the market price and if the normal rate of profit is 10 percent, then what will each firm's accounting profit per unit be? cents per unit

A firm in a purely competitive industry is currently producing 1,400 units per day at a total cost of $500. If the firm produced 1,200 units per day, its total cost would be $350, and if it produced 900 units per day, its total cost would be $325. Instructions: Enter your answers rounded to two decimal places. a. What is the firm's ATC per unit at these three levels of production? At 1,400 units per day, ATC = $ At 1,200 units per day, ATC = $ At 900 units per day, ATC = $ 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? d. If that price ends up being the market price and if the normal rate of profit is 10 percent, then what will each firm's accounting profit per unit be? cents per unit

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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