Q1) Suppose that a firm is perfectly competitive industry has following total cost schedule:
Outputs (units)
|
Total Cost ($)
|
10
|
$110
|
15
|
$150
|
20
|
$180
|
25
|
$225
|
30
|
$300
|
35
|
$385
|
40
|
$480
|
a. Compute marginal cost and average cost schedule for this firm.
b. If prevailing market price is $17 per unit, how many units will be manufactured and sold? Determine the profits per unit? What are total profits?
c. Is industry in long-run equilibrium at this price?