Is the industry in long-run equilibrium at this price

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Why invest capital in purely competitive industries with equilibrium margins that are razor thin and entrants that erode quasi profits? Suppose volume is not exceptionally large, why then?

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

a. Calculate a marginal cost and an average cost schedule for the firm.

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

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

Reference no: EM131324788

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