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Q. A firm in a purely competitive industry is currently producing 1000 units per day at a total cost of $450. If the firm produced 800 units per day, it's total cost would be $300 also if it produced 500 units per day, its total cost would be $275. Illustrate what are the firms ATC per unit at these three levels of production? If every firm in this industry has the similar cost structure, is the industry in long-run competitive equilibrium? From Illustrate what you know about these firms cost structures, Illustrate what is the highest possible price per unit which could exist as the market price in long-run equilibrium? If which price ends up being the market price also if the normal rate of profit is 10 percent, then Explain how big will each firm's accounting profit per unit be?
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