Assume we have a perfectly competitive industry facing constant costs which have reached a long-run equilibrium at price P.
September 3, 2020
I asked for an extension already and I have to 11pm CST. I tried to get assitant 3/11 but needed to clarify the question than I resubmit on 3/12 and…
September 3, 2020

Each of the following describes the situation currently faced by a perfectly competitive firm. In each situation, determine the firm’s profit and whether the firm is maximizing profit. If the firm is not maximizing profit, determine how the firm must respond to increase its profit.

a. P=$5, Q=500, TVC = $1500, AFC = $1, MC=AVC

b. AR = $10, Q=100, TC = $2000, TVC=$1500, MC = $10

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