Class exercise for chapter 11 (1)

Class exercise for chapter 11 (1) - d. In long-run...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Class exercise for chapter 11: Price taking firms The following graph shows a perfectly competitive firm's long-run cost curves. a. If price is $70, the firm will produce 5500 units of output. b. If price is $70, total revenue will be 385,000 and total cost will be 275,000. c. If price is $70, the firm makes 110, 000 economic profit.
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: d. In long-run competitive equilibrium, the firm will produce 4000 units of output and sell them at a price of $40 if this is a constant cost industry. e. In long-run equilibrium, the firm's economic profit is $ 0....
View Full Document

Ask a homework question - tutors are online