Need help with MBA6008, Unit 3 u03a1 Unit 3 Economic Problems assignment, Chapter 11, Problem 2. The topic is Long-Run Equilibrium.
If every firm in this industry has the same cost structure, is the industry in long-run competitive equilibrium?
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?
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?