Exercise 10.6 Assume that a firm in a perfectly competitive industry has the following total cost...
Exercise 10.6
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 Cost |
Marginal Cost |
Average Cost |
|---|---|---|---|
|
(units) |
($) |
($) |
($) |
| 10 | 440 | ||
| 15 | 600 | ||
| 20 | 720 | ||
| 25 | 900 | ||
| 30 | 1,200 | ||
| 35 | 1,540 | ||
| 40 | 1,920 |
If the prevailing market price is $68 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?
No
Yes
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Exercise 10.6
Assume that a firm in a perfectly competitive industry has the
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Microeconomic question
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