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Below is a table with total data for a firm in a perfectly competitive industry.
Quantity
Total Cost
0
100
10
220
15
300
20
360
25
450
30
600
35
770
40
960
a. What is the marginal cost and average total cost for the firm at each level of output?
b. If the prevailing market price is $34 per unit, how many units will be produced and sold? What are the profits per unit? What are total profits?
c. Is the industry in long run equilibrium at this price? If not, what do you expect to happen to price over time?
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