Σ * 00 B. # Chapter 11 6 Saved Help A firm in a purely competitive industry is currently producing 1,200 units per day at a total cost of $700. If the firm produced 1,000 units per day, its total cost would be $450, and if it produced 700 units per day, its total cost would be $425. Instructions: Round your answers to 2 decimal places. a. What are the firm's ATC at these three levels of production? At 1,200 units per day, ATC = %3D At 1,000 units per day, ATC = At 700 units per day, ATC = %3D b. If every firm in this industry has the same cost structure, is the industry in long-run competitive equilibrium? (Click to select) v c. From what you know about these firms' cost structures, what is the highest possible price per unit that could exist as the market price in long-run equilibrium? 5 of 6 Next > < Prev .... .. 72°F Partly sunny ( C v e here to search 近。 Profile Ball1 F10 papersmate F7 F5 F3 F2 & 24 4. R. N Ctri Ait Σ * 00 LL b.f every firm in this industry has the same cost structure, is the industry in long-run competitive equilibrium? (Click to select) v c. From what you know about these firms' cost structures, what is the highest possible price per unit that could exist as the market price in long-run equilibrium? d. If that price ends up being the market price and if the normal rate of profit is 10 percent, then how big will each firm's accounting profit per unit be? cents per unit < Prev 5 of 6 72°F Partly sunny e here to search 直。 Profile Ball o PaperMate PriScr F8 F6 F7 F4 F5 & %23 2$ 5. 2. W N B. Ctrl Alt

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Transcribed Image Text:Σ * 00 B. # Chapter 11 6 Saved Help A firm in a purely competitive industry is currently producing 1,200 units per day at a total cost of $700. If the firm produced 1,000 units per day, its total cost would be $450, and if it produced 700 units per day, its total cost would be $425. Instructions: Round your answers to 2 decimal places. a. What are the firm's ATC at these three levels of production? At 1,200 units per day, ATC = %3D At 1,000 units per day, ATC = At 700 units per day, ATC = %3D b. If every firm in this industry has the same cost structure, is the industry in long-run competitive equilibrium? (Click to select) v 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? 5 of 6 Next > < Prev .... .. 72°F Partly sunny ( C v e here to search 近。 Profile Ball1 F10 papersmate F7 F5 F3 F2 & 24 4. R. N Ctri Ait

Transcribed Image Text:Σ * 00 LL b.f every firm in this industry has the same cost structure, is the industry in long-run competitive equilibrium? (Click to select) v 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 how big will each firm's accounting profit per unit be? cents per unit < Prev 5 of 6 72°F Partly sunny e here to search 直。 Profile Ball o PaperMate PriScr F8 F6 F7 F4 F5 & %23 2$ 5. 2. W N B. Ctrl Alt

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