Calculating a competitive industry’s long-run equilibrium

A firm in a purely competitive industry is currently producing 1200 units per day at a total cost of \$600 . If the firm purchased 1000 units per day, its total cost would be \$400, and if it produced 700 units per day, its total cost would be \$375. What is the firms ATC per unit at these three levels of production? If every firm in this industry has the same cost structure, is the 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%, then how big will each firm’s accounting profit per unit be?

Solution Preview
Average Total Cost (ATC) = Total Cost (TC)/Quantity of output (Q)

Don't use plagiarized sources. Get Your Custom Essay on
Calculating a competitive industry’s long-run equilibrium
From \$8/Page

When Q = 1200, ATC = (600/1200=) \$0.50
When Q = 1000, ATC = (400/1000=) \$0.40
When Q = 700, ATC = (375/700=) \$0.54

In a perfectly competitive …

Solution Summary
Given data on a typical firm’s cost function, this solution shows how to calculate the market price for the industry in long-run equilibrium.To continue with the answer check on topwriters4me.com/

Calculate the price
Make an order in advance and get the best price
Pages (550 words)
\$0.00
*Price with a welcome 20% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Upload your instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with Top Writers 4Me
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
Testimonials
See why 10k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
Communications
Thank you for your hard work; I enjoyed reading the essay and appreciate your writing.
Customer 452483, July 18th, 2021
Nursing
Good job! Thank you.
Customer 452487, October 26th, 2021
Healthcare Writing & Communications
Thank you so much for all of your hard work! Appreciate it all!
Customer 452483, November 14th, 2021
Communications
came in earlier than I thought and has all the sources listed and cited in APA format, overall all perfect!
Customer 452461, May 24th, 2021
English 101
Great work! Thanks!
Customer 452567, August 2nd, 2022
Healthcare Writing & Communications
Excellent!! Youâ€™re awesome, thank you very much for all of your hard work & help!!
Customer 452483, October 24th, 2021
Biology (and other Life Sciences)
Power Point Presentation was great, appreciate all of your hard work. Thank you!
Customer 452483, August 9th, 2021
Mathematics
PERFECT! Thanks a million, you're all awesome!!!!
Customer 452483, July 7th, 2021
Nursing
Good job! Thank you
Customer 452487, October 17th, 2021
Nursing
Excellent job! super recommended.
Customer 452487, August 24th, 2021
Nursing
Excellent writing !! Definitely I will use your services again... Thank you.
Customer 452487, August 22nd, 2021
English 101
Perfect! Thank you so much for all of your hard work and help! Appreciate it!!
Customer 452483, August 30th, 2021
1159
Customer reviews in total
96%
Current satisfaction rate
2 pages
Average paper length
47%
Customers referred by a friend
OUR GIFT TO YOU
20% OFF your first order
Use a coupon 24/7HELP and enjoy expert help with any task at the most affordable price.
Claim my 20% OFF Order in Chat
Get in Touch with Our Live Chat Agents via WhatsApp on +1(346) 416-0954. Get Unlimited Access to Answers on Any Queries With Your Paper.