6. The following figure shows long-run average and marginal cost curves for a competitive firm. The price of the product is $40. LMC 40 D-MR-P LAC 30 20 10 0 2,000 4,000 6,000 8,000 10,000 Quantity a. How much will the firm produce? What will be its economic profit? b. When the industry attains long-run competitive equilibrium, what will be the price and the firm's output? What will be the firm's economic profit? Price and cost T

6. The following figure shows long-run average and marginal cost curves for a competitive firm. The price of the product is $40. LMC 40 D-MR-P LAC 30 20 10 0 2,000 4,000 6,000 8,000 10,000 Quantity a. How much will the firm produce? What will be its economic profit? b. When the industry attains long-run competitive equilibrium, what will be the price and the firm's output? What will be the firm's economic profit? Price and cost T

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter12: Firms In Perfectly Competitive Markets

Section: Chapter Questions

Problem 13P

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Similar questions

If new technology in a perfectly competitive market brings about a substantial reduction in costs of production, how will this affect the market?
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