The minimum feasible long-run average cost for firms in a perfectly competitive industry is $40 per- unit. If every firm in the industry currently is pro- ducing an output consistent with a long-run equi- librium, what is the marginal cost incurred by each firm? What is the market price?

The minimum feasible long-run average cost for firms in a perfectly competitive industry is $40 per- unit. If every firm in the industry currently is pro- ducing an output consistent with a long-run equi- librium, what is the marginal cost incurred by each firm? What is the market price?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

The minimum feasible long-run average cost for
firms in a perfectly competitive industry is $40 per
unit. If every firm in the industry currently is pro-
ducing an output consistent with a long-run equi-
librium, what is the marginal cost incurred by each
firm? What is the market price?

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