How big will each firms accounting profit per unit be

Assignment Help Econometrics

Reference no: EM13238295

A firm in a purely competitive industry is currently producing 1,000 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, it's total cost would be $275. What are 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 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?

Reference no: EM13238295

Questions Cloud

Find the angle the resultant force makes with rope of dog a : Two dogs pull horizontally on ropes attached to a post; the angle between the ropes in 69.0 degrees, Find the angle the resultant force makes with the rope of dog A

Find what was the rate of return on the investment : An investment of $5000 in Biotech common stock proved to be very profitable. At the end of 3 years the stock was sold for $25000. What was the rate of return on the investment

What nominal annual interest rate will you be charged : A table saw costs $175 at a local store. You may either pay cash for it or pay $35 now and $12.64 a month for 12 months beginning 30 days hence. If you choose the time payment plan, what nominal annual interest rate will you be charged

What factors managers evaluate when planning for production : Producing a product and/or service has to involve a lot of strategic planning for the producer. It is not logical for a producer to just pick how much they want to produce without analyzing several key figures.

How big will each firms accounting profit per unit be : A firm in a purely competitive industry is currently producing 1,000 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, it's total cost would be $275.

What amount must charge to break even on the costs : You are a newspaper publisher. You are in the middle of a one-year rental contract for your factory that requires you to pay $500,000 per month, and you have contractual labor obligations of $1 million per month that you can't get out of.

What do the facts say about growth in labor productivity : From 1950 to 2000, manufacturing employment as a percentage of total employment in the U.S. economy fell from 28 percent to 13 percent. At the same time, manufacturing output experienced slightly more rapid growth

Find the average net force exerted on the bullet : A 22.5 g bullet is fired from a rifle. It takes 2.60 10-3 s for the bullet to travel the length of the barrel, find the average net force exerted on the bullet

What mechanism could strong economic growth lead to politics : International data show a positive correlation between political stability and economic growth. Through what mechanism could political stability lead to strong economic growth and through what mechanism could strong economic growth lead to politic..

User Account

All Pages