Econ 101 : Text Microeconomics , Roger Arnold

4 Assume that a purely competitive firm has the schedule of the average and marginal costs given in the table below OUTPUT AFC AVC ATC MC $300 $100 $400 $100 150 75 225 50 100 70 170 60 4 75 73 148 80 5 60 80 140 110 6 50 90 140 140 43 103 146 180 38 119 156 230 a. At a price of $68, the firm will produce units of output. The firm's economic profit is b. At a price of $80, the firm will produce units of output. The firm's economic profit is Will the firm break-even at this price? If not, what will be this firm's break-even price? Explain why. c. At a price of $190, the firm will produce units of output. Will $190 be the long run price for this firm? Explain your answer. If this is not the long run price, what will be the long run price