Assuming that a firm in a perfect competitive industry has the following total costs schedule:

Output Total Cost

10 110

15 150

20 180

25 225

30 300

35 385

40 480

a. Calculate a marginal cost and an average cost schedule for the firm

b. If the prevailing market price is $17 per unit, how many units will be produced and sold? What are profits per unit? What are total profits?

c. Is the industry in long-run equilibrium at this price?