A perfectly competitive rm finds that the market price for its product is $20.00. It has a xed cost of $100.00 and a variable cost of $17.50 per unit forthe first 50 units and then $27.50 per unit for all successive units. Instructions: Round your answers to 2 decimal places. a. Does price equal or exceed average variable cost for the rst 50 units?(Cllcktoselect)v What is the average variable cost for the rst 50 units? 5]; b. Does price equal or exceed average variable cost for the first 100 units? (Clickto select) v . What is the average variable cost for the rst 100 units? $ c. What is the marginal cost per unit for the rst 50 units? 33 per unit. What is the marginal cost for units 51 and higher? $ per unit. d. For each of the first 50 units, does MR exceed MC? (Click to select) v . What about for units 51 and higher? (Click to select)v . e. What output level will yield the largest possible profit for this perfectly competitive rm? units. The basic model of perfect competition reviewed in this chapter finds that in the long run all rms in a perfectly competitive industry will earn normal profits. If all rms will only earn a normal profit in the long run. why would any firms bother to develop new products or lowercost production methods? Explain. Essay Toolbar navigation BIB-5 IN IN llll ll liil Ill ( I