Average cost schedule for perfectly competitive firm

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Reference no: EM1316369

Assume that a firm is a perfectly competitive industry has the following total cost schedule:

Outputs (units)

Total Cost ($)

10

$110

15

$150

20

$180

25

$225

30

$300

35

$385

40

$480

a. Calculate a marginal cost and average cost schedule for this firm.

b. If the prevailing market price is $17 per unit, how many units will be produced and sold? What are the profits per unit? What are total profits?

c. Is the industry in long-run equilibrium at this price?

Reference no: EM1316369

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