Assume that a firm in a perfectly competitive industry has the following total costs schedule:
( Units ) Total Cost
( $ )
a) Calculate and graph a marginal cost and an average cost schedule for the firm.
b) If the market price is $17 per unit, how many units will be produced and sold? What are profits per unit? What are total profits?
c) Is the company in long-run equilibrium at this price? Explain.