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
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
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
![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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8ea3a059-0a8a-4779-bed8-ef5706e6b286%2F1aa317c8-372a-474d-8570-69d7531672b1%2Fxxwsnus.jpeg&w=3840&q=75)
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 $425.
Instructions: Round your answers to 2 decimal places.
a. What are the firm's ATC at these three levels of production?
At 1,200 units per day, ATC =
%3D
At 1,000 units per day, ATC =
At 700 units per day, ATC =
%3D
b. If every firm in this industry has the same cost structure, is the industry in long-run competitive equilibrium?
(Click to select) v
c. From what you know about these firms' cost structures, what is the highest possible price per unit that could exist as the market
price in long-run equilibrium?
5 of 6
Next >
< Prev
.... ..
72°F Partly sunny
( C v
e here to search
近。
Profile Ball1
F10
papersmate
F7
F5
F3
F2
&
24
4.
R.
N
Ctri
Ait
![Σ
* 00
LL
b.f every firm in this industry has the same cost structure, is the industry in long-run competitive equilibrium?
(Click to select) v
c. From what you know about these firms' cost structures, what is the highest possible price per unit that could exist as the market
price in long-run equilibrium?
d. If that price ends up being the market price and if the normal rate of profit is 10 percent, then how big will each firm's accounting
profit per unit be?
cents per unit
< Prev
5 of 6
72°F Partly sunny
e here to search
直 。
Profile Ball o
PaperMate
PriScr
F8
F6
F7
F4
F5
&
%23
2$
5.
2.
W N
B.
Ctrl
Alt](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8ea3a059-0a8a-4779-bed8-ef5706e6b286%2F1aa317c8-372a-474d-8570-69d7531672b1%2Fh0y2bou.jpeg&w=3840&q=75)
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
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Recommended textbooks for you
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
![Principles of Economics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781305585126/9781305585126_smallCoverImage.gif)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
![Managerial Economics: A Problem Solving Approach](https://www.bartleby.com/isbn_cover_images/9781337106665/9781337106665_smallCoverImage.gif)
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
![Managerial Economics & Business Strategy (Mcgraw-…](https://www.bartleby.com/isbn_cover_images/9781259290619/9781259290619_smallCoverImage.gif)
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education