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Assume that a firm in a perfectly competitive industry has the following total cost schedule:(3 points)
Output
Total Cost
Average Cost
Marginal Cost
10
110
na
15
150
20
180
25
225
30
300
35
385
40
480
a) Calculate the average and marginal costs for the firm.
b) At a market price of $15 per unit, how many units will be produced and sold? What is the profit per unit? What is total profit?
c) Is the industry in long run equilibrium at this price? Why or why not?
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