A firm in a purely competitive industry is currently

Assignment Help Microeconomics
Reference no: EM13374405

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 total cost would be $300, and if it produced 500 units per day, its total cost would be $275. What is the firm's ATC per unit at these three levels of production? If every firm in this industry has the same cost structure, is the industry in long-run competitive equilibrium? From what you know about these firms' cost structures, what is the highest possible price per unit that could exist as the market price in long-run equilibrium? If that price ends up being the market price and if the normal rate of profit is 10 percent, then how big will each firm's accounting profit per unit be? (LO5)

Feedback: Consider the following example. 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, its total cost would be $300, and if it produced 500 units per day, its total cost would be $275.

Reference no: EM13374405

Questions Cloud

Provide an essay on what i want to achieve with my : provide an essay on what i want to achieve with my college
You will be able to choose for your assignment one of the : you will be able to choose for your assignment one of the following topics.an economic analysis of an australian or
Essay topic describe theferent attitudes expressed by the : essay topic describe the??ferent attitudes expressed by the young waiter and the old waiter. which one do you identify
To accept passively an unjust system is to cooperate with : to accept passively an unjust system is to cooperate with that system thereby the oppressed become as evil as the
A firm in a purely competitive industry is currently : a firm in a purely competitive industry is currently producing 1000 units per day at a total cost of 450. if the firm
The meaning : the meaning of
Discuss the social functionsdysfunctions of deviance based : discuss the social functionsdysfunctions of deviance. based on numerous theories can society ever be free of deviance?
Assume that the cost data innbsp the top table of the next : assume that the cost data innbsp the top table of the next column are for a purely competitive producer lo3.total
Read the fictional critique below then answer the : read the fictional critique below. then answer the subsequent questions.art critiquei had the pleasure of attending the

Reviews

Write a Review

Microeconomics Questions & Answers

  Problem 1a manufacturing firm faces the following

problem 1a manufacturing firm faces the following production schedules in the short run when capital is fixed at 10

  Did the monopoly increase barriers to entry

Using the ITT Tech Virtual Library, research information on companies that have engaged in monopoly behavior, such as Microsoft, Google, or Wal-Mart, and explain how society has been affected by the monopoly behavior using that information.

  Find linear demand and supply curves

Find linear demand and supply curves that are consistent with this information and how would the equilibrium price of ethanol motor fuel in the first half of 2008 compare to the price in 2007?

  What is the estimated effect of str on testscr

What is the probability that all the population slope coefficients are actually zero, but the coefficients we estimated are different from zero due merely to random sampling variability In other words, what is the probability that the R2 is actual..

  Identify the factors affecting production and costs

Identify the factors affecting production and costs in the short run to determine which single factor has the greatest impact on the widest variety of companies. Provide specific examples to support your response.

  Describe what is sepcial about falling chip price

What is price elasticity How does Moore's Law relate to this concept  What is sepcial about falling chip price What is the advantage of using grid computing to simulate an automobile crash test as opposed to actually stag

  Discuss how liquidity money curve derived

Discuss how is the liquidity money (LM) curve derived and determine what impacts it and how does it impact the global economy? Provide examples and support your claims.

  Role of our government play in price ceilings

What role should our government play in Price Ceilings?

  What is the expression for pedros budget constraint

Pedro is a college student who receives a monthly stipend from his parents of $1,000. He uses this stipend to pay rent for housing and to go to the movies (assume that all of Pedro’s other expenses, such as food and clothing have already been paid fo..

  Is this social preference profile single-peaked

Is this social preference profile single-peaked?

  Effect on the production possibilities frontier

Use a production possibilities frontier graph to illustrate the trade-off to an economy between producing consumption goods and producing capital goods.

  What is the values of the demand elasticities

Using calculus, show that the demand and supply curve have constant elasticity along their entire length. What are the values of the demand and supply elasticities?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd