Business, 07.03.2020 03:15 KenzieD6032

A firm in a purely competitive industry is currently producing 1,200 units per day at a total cost of $700. If the firm produced 1,000 units per day, its total cost would be $450, and if it produced 700 units per day, its total cost would be $425.

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 firm's ATC at these three levels of production?

At 1,200 units per day, ATC = $.

At 1,000 units per day, ATC = $.

At 700 units per day, ATC = $.

b. If every firm in this industry has the same cost structure, is the industry in long-run competitive equilibrium? (Click to select)NoYes.

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 firm’s accounting profit per unit be? cents per unit.

Answers: 1

Show answers

Another question on Business

Business, 22.06.2019 01:50

Atlas manufacturing produces a unique valve, and has the capacity to produce 50,000 valves annually. currently atlas produces 40,000 valves and is thinking about increasing production to 45,000 valves next year. what is the most likely behavior of total manufacturing costs and unit manufacturing costs given this change? a. total manufacturing costs will increase and unit manufacturing costs will also increase. b. total manufacturing costs will stay the same and unit manufacturing costs will stay the same. c. total manufacturing costs will increase and unit manufacturing costs will decrease. d. total manufacturing costs will increase and unit manufacturing costs will stay the same.

Answers: 1

Answer

Business, 22.06.2019 20:20

Tl & co. is following a related-linked diversification strategy, and soar inc. is following a related-constrained diversification strategy. how do the two firms differ from each other? a. soar inc. generates 70 percent of its revenues from its primary business, while tl & co. generates only 10 percent of its revenues from its primary business. b. soar inc. pursues a backward diversification strategy, while tl & co. pursues a forward diversification strategy. c. tl & co. will share fewer common competencies and resources between its various businesses when compared to soar inc. d. tl & co. pursues a differentiation strategy, and soar inc. pursues a cost-leadership strategy, to gain a competitive advantage.

Answers: 3

Answer

Business, 22.06.2019 22:10

Asupermarket has been experiencing long lines during peak periods of the day. the problem is noticeably worse on certain days of the week, and the peak periods are sometimes different according to the day of the week. there are usually enough workers on the job to open all cash registers. the problem is knowing when to call some of the workers stocking shelves up to the front to work the checkout counters. how might decision models the supermarket? what data would be needed to develop these models?

Answers: 2

Answer

Business, 22.06.2019 22:10

Atoy store has a new game in stock, but customers aren't buying it. which of the following types of inventory increases when customers aren't buying this game? a. work-in-process b. raw materials c. finished goods d. in-transit

Answers: 3

Answer

You know the right answer?

A firm in a purely competitive industry is currently producing 1,200 units per day at a total cost o...

Questions