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    calculating costs and equilibrium for perfect competition

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    Below is a table with total data for a firm in a perfectly competitive industry.
    Quantity Total Cost
    0 100
    10 220
    15 300
    20 360
    25 450
    30 600
    35 770
    40 960

    a. What is the marginal cost and average total cost for the firm at each level of output?
    b. If the prevailing market price is $34 per unit, how many units will be produced and sold? What are the profits per unit? What are total profits?
    c. Is the industry in long run equilibrium at this price? If not, what do you expect to happen to price over time?

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    https://brainmass.com/economics/general-equilibrium/calculating-costs-equilibrium-perfect-competition-480077

    Solution Preview

    Q TC MC ATC = TC/Q
    0 100
    10 220 (220-100)/10 = 12 22
    15 300 (300 - 220)/5 = 16 20
    20 360 12 18
    25 450 18 18
    30 600 30 ...

    Solution Summary

    This solution contains step-by-step instructions in calculating costs and equilibrium for a perfectly competitive industry. It also determines the marginal cost, average cost, total profits and long run equilibrium with an interpreted analysis.

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