# What are the firms ATC at these three levels of production?

A firm in a purely competitive industry is currently producing 1400 units per day at a total cost o Show more A firm in a purely competitive industry is currently producing 1400 units per day at a total cost of \$450. If the firm produced 1200 units per day its total cost would be \$300 and if it produced 900 units per day its total cost would be \$275. Instructions: In parts a and c round your answers to 2 decimal places. In part d round your answer to 1 decimal place. a. What are the firms ATC at these three levels of production? At 1400 units per day ATC = \$. At 1200 units per day ATC = \$. At 900 units per day ATC = \$. b. If every firm in this industry has the same cost structure is the industry in long-run competitive equilibrium? . c. 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? \$. d. If that price ends up being the market price and if the normal rate of profit is 10 percent then how big will each firms accounting profit per unit be? cents per unit. Show less

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\$12