Q a firm in a purely competitive business is currently

Assignment Help Business Economics

Reference no: EM13352727

Q. A firm in a purely competitive business is currently producing a 1000 unit/day at a total cost of $450. If the firm produced 800 units / day, it total cost will be $300, and it it produced 500 units / day, it total cost will be $275. Requirements:

(1) Elucidate the firm's ATC per unit at these three levels of production?

(2) If every firm in this industry has the same cost structure, is the industry in long-run competitive equilibrium?

(3) From what you know about these firms' cost structure, what is the highest possible price per unit that could be existing as the market price in the long run equilibrium?

(4) If that price ends up being the market price and if the normal rate of profit is 10%, how big will each firm's accounting profit per unit?

Reference no: EM13352727

Questions Cloud

Qfrank knight has a job as a sales manager earning 100000 : q.frank knight has a job as a sales manager earning 100000 per year and he is deciding whether to purchase a bakery

Q 1 describe michael porters five-force model and indicate : q. 1. describe michael porters five-force model and indicate why many observers regard his paradigm of industry

Q1 according to a study of us cigarette sales between 1955 : q1. according to a study of u.s. cigarette sales between 1955 and 1985 when the price of cigarettes was 1 higher

Q1 why does michael porter admonish companies not to change : q1. why does michael porter admonish companies not to change their competitive positioning any more frequently than

Q a firm in a purely competitive business is currently : q. a firm in a purely competitive business is currently producing a 1000 unitday at a total cost of 450. if the firm

Qreflect on the solow growth model by means of technology : q.reflect on the solow growth model by means of technology given by y zfk n k12n12 its savings rate is 0.2 moreover

Qa computer manufacturer developed the following demand : q.a computer manufacturer developed the following demand curve.q - 700p 80i - 500s 0.01awhere p is the price of a

Q1 illustrate the way in which market forces shape the : q1. illustrate the way in which market forces shape the organizational responses using a range of examplesq2. jerome

User Account

All Pages