Competitive price-taker firm that is currently producing

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Alpha Company is a competitive price-taker firm that is currently producing 100 units of output (Q=100). At the current level of production, the firm has Marginal Revenue of (MR=) $20, Average Variable Cost of (AVC=) $12, Marginal Cost of (MC=) $15, and Average Total Cost of (ATC=) $18. Use this information in responding to the following two requests. Each part is worth four (4) points. 3.2. At the current level of output (Q), should the firm change its level of production? Defend/Explain how you determined your response. In the long-run, explain what will happen to the number of firms in this competitive industry?

Reference no: EM131393468

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