Assume that a firm in a perfectly competitive industry has the following total cost schedule:(3 points)
|
Output
|
Total Cost
|
Average Cost
|
Marginal Cost
|
|
10
|
110
|
|
na
|
|
15
|
150
|
|
|
|
20
|
180
|
|
|
|
25
|
225
|
|
|
|
30
|
300
|
|
|
|
35
|
385
|
|
|
|
40
|
480
|
|
|
a) Calculate the average and marginal costs for the firm.
b) At a market price of $15 per unit, how many units will be produced and sold? What is the profit per unit? What is total profit?
c) Is the industry in long run equilibrium at this price? Why or why not?