CARLOS 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 $325, 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? 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?

CARLOS 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 $325, 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? 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?

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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