A firm in a purely competitive industry is currently producing 1,200 units per day at a total cost of $500. If the firm produced 1,000 units per day, its total cost would be $350, and if it produced 700 units per day, its total cost would be $325. Instructions: Enter your answers rounded to two decimal places. a. What is the firm's ATC per unit at these three levels of production? At 1,200 units per day, ATC = $ At 1,000 units per day, ATC = $ At 700 units per day, ATC = $ b. If every firm in this industry has the same cost structure, is the industry in long-run competitive equilibrium? |(Click to select) ♥ c. 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? 2$ d. If that price ends up being the market price and if the normal rate of profit is 10 percent, then what will each firm's accounting profit per unit be? cents per unit

A firm in a purely competitive industry is currently producing 1,200 units per day at a total cost of $500. If the firm produced 1,000 units per day, its total cost would be $350, and if it produced 700 units per day, its total cost would be $325. Instructions: Enter your answers rounded to two decimal places. a. What is the firm's ATC per unit at these three levels of production? At 1,200 units per day, ATC = $ At 1,000 units per day, ATC = $ At 700 units per day, ATC = $ b. If every firm in this industry has the same cost structure, is the industry in long-run competitive equilibrium? |(Click to select) ♥ c. 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? 2$ d. If that price ends up being the market price and if the normal rate of profit is 10 percent, then what will each firm's accounting profit per unit be? cents per unit

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter13: The Cost Of Production

Section: Chapter Questions

Problem 10PA

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