4. A firm in a purely competitive industry is currently producing 1, 500 units per day at a total cost of $500. If the firm produced 1,000 units per day, its total cost would be $310, and if it produced 500 units per day, its total cost would be $175. a. What are the firm's ATC at these three levels of production? i. At 1,500 units per day, ATC = $. ii. At 1,000 units per day, ATC = S. ll. At 500 units per day, ATC = S. b. If all firms have the same cost structure, what is the highest possible price per unit that could exist as the market price in long-run equilibrium?

4. A firm in a purely competitive industry is currently producing 1, 500 units per day at a total cost of $500. If the firm produced 1,000 units per day, its total cost would be $310, and if it produced 500 units per day, its total cost would be $175. a. What are the firm's ATC at these three levels of production? i. At 1,500 units per day, ATC = $. ii. At 1,000 units per day, ATC = S. ll. At 500 units per day, ATC = S. b. If all firms have the same cost structure, what is the highest possible price per unit that could exist as the market price in long-run equilibrium?

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: The Cost Of Production

Section12.3: The Various Measures Of Cost

Problem 3QQ

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