O O 971 5:39Total CostOutput(Units)($)50101202017030210402605033060430Total costs include a "normal" return on the time (labor services) and capital that the ownerhas invested in the firm. The prevailing market price is $7 per unit.(a) Prepare (i) marginal cost and (ii) average total cost schedules for the firm.(b) What is the firm's profit maximizing output level?Is the industry in long-run equilibrium? Justify your answer.

MC = Change in TC / Change in Q ATC = TC / Q Q TC Change in TC Change in Q MC ATC 0 50…

Total Cost Output (Units) ($) 50 10 120 20 170 30 210 40 260 50 330 60 430 Total costs include a "normal" return on the time (labor services) and capital that the own has invested in the firm. The prevailing market price is $7 per unit. 키) Prepare (i) marginal cost and (ii) average total cost schedules for the firm.

Total Cost Output (Units) ($) 50 10 120 20 170 30 210 40 260 50 330 60 430 Total costs include a "normal" return on the time (labor services) and capital that the own has invested in the firm. The prevailing market price is $7 per unit. 키) Prepare (i) marginal cost and (ii) average total cost schedules for the firm.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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