Consider the following costs of a typical firm in a purely competitive industry. The firm has no fixed costs (average total cost = averagevariable cost).Average TotalCostQuantityMarginal Cost1$16.00215.00$14.0013.009.00418.7536.0057.00210.006123.50370.00a. Given only the information available, what would you expect product price to be in the long run?O $9.00$13.00$18.75$14.00b. What would you expect price to be in the short run?$12.00$10.00$9.00$14.00

In a perfect competition market, a firm cannot enjoy the same profit level in the short-run and…

Consider the following costs of a typical firm in a purely competitive industry. The firm has no fixed costs (average total cost = average variable cost). Average Total Cost Quantity Marginal Cost 1 $16.00 15.00 $14.00 3 13.00 9.00 4 18.75 36.00 57.00 210.00 6. 123.50 370.00 a. Given only the information available, what would you expect product price to be in the long run? O $9.00 O $13.00 O $18.75 O $14.00 b. What would you expect price to be in the short run? O $12.00 O $10.00 O $9.00 O $14.00

Consider the following costs of a typical firm in a purely competitive industry. The firm has no fixed costs (average total cost = average variable cost). Average Total Cost Quantity Marginal Cost 1 $16.00 15.00 $14.00 3 13.00 9.00 4 18.75 36.00 57.00 210.00 6. 123.50 370.00 a. Given only the information available, what would you expect product price to be in the long run? O $9.00 O $13.00 O $18.75 O $14.00 b. What would you expect price to be in the short run? O $12.00 O $10.00 O $9.00 O $14.00

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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