Solve all questions compulsory.. Assume that a firm in a perfectly competitive industry has the following total cost schedule:Calculate a marginal cost and an average cost schedule for the firm to complete the following table.Output Total CostMarginal Cost($)Average Cost($)(units)($)10220153002036025450306003577040960If the prevailing market price is $34 per unit,units will be produced. Profits per unit will beand total profits will beIs the industry in long-run equilibrium at this price?YesΟ NO

Marginal cost is the change in total cost when an additional unit of output is produced.The average…

Assume that a firm in a perfectly competitive industry has the following total cost schedule: Calculate a marginal cost and an average cost schedule for the firm to complete the following table. Output (units) Total Cost ($) Marginal Cost ($) Average Cost ($) 10 220 15 300 20 360 25 450 30 600 35 770 40 960 If the prevailing market price is $34 per unit, units will be produced. Profits per unit will be and total profits will be Is the industry in long-run equilibrium at this price? Yes Ο NO

Assume that a firm in a perfectly competitive industry has the following total cost schedule: Calculate a marginal cost and an average cost schedule for the firm to complete the following table. Output (units) Total Cost ($) Marginal Cost ($) Average Cost ($) 10 220 15 300 20 360 25 450 30 600 35 770 40 960 If the prevailing market price is $34 per unit, units will be produced. Profits per unit will be and total profits will be Is the industry in long-run equilibrium at this price? Yes Ο NO

Microeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506893

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter11: Price-searcher Markets With High Entry Barriers

Section: Chapter Questions

Problem 14CQ

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