This paper circulates around the core theme of 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 un 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.
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. 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
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?