This paper circulates around the core theme of Calculate the average total cost at these different sales levels. Assuming that the cost structure for every firm in the industry is identical, do you think that the industry could be in long-run equilibrium? If the industry is perfectly competitive, what together with its essential aspects. It has been reviewed and purchased by the majority of students thus, this paper is rated 4.8 out of 5 points by the students. In addition to this, the price of this paper commences from £ 99. To get this paper written from the scratch, order this assignment now. 100% confidential, 100% plagiarism-free.
Assume that a purely competitive firm is selling 2000 television sets
a day at a cost of $90,000. Assume that if the firm sells 1600 units
per day, its total cost would be $60,000, and if it sold 1000 units per
day, it would have a total cost of $55,000.
- Calculate the average total cost at these different sales levels.
- Assuming that the cost structure for every firm in the industry is
identical, do you think that the industry could be in long-run
equilibrium?
- If the industry is perfectly competitive, what would be the long-run equilibrium market price?
- If your answer to c is the market price and every firm in the
industry is earning a normal profit of 15 percent, calculate what that
profit would be.
