A firm sells its output in a competitive market. The firm's total cost function is given in the accompanying schedule: $\begin{array}{cc}\text { Output }&\text { Total Cost(in dollars) }\
0 & \$ 5 \
1 & \$ 11 \
2 & \$ 17 \
3 & \$ 21 \
4 & \$ 26 \
5 & \$ 33 \
6 & \$ 43
\end{array}$ The market price is $7 per unit.
a. What is the firm's profit-maximizing output level?
b. Is the industry in long-run equilibrium? Explain.

Question

A firm sells its output in a competitive market. The firm's total cost function is given in the accompanying schedule: $\begin{array}{cc}\text { Output }&\text { Total Cost(in dollars) }\
0 & \$ 5 \
1 & \$ 11 \
2 & \$ 17 \
3 & \$ 21 \
4 & \$ 26 \
5 & \$ 33 \
6 & \$ 43
\end{array}$ The market price is $7 per unit. 
a. What is the firm's profit-maximizing output level?
b. Is the industry in long-run equilibrium? Explain.

Quizplus · Accepted Answer

The Answer of A firm sells its output in a competitive market. The firm's total cost function is given in the accompanying schedule: $\begin{array}{cc}\text { Output }&\text { Total Cost(in dollars) }\
0 & \$ 5 \
1 & \$ 11 \
2 & \$ 17 \
3 & \$ 21 \
4 & \$ 26 \
5 & \$ 33 \
6 & \$ 43
\end{array}$ The market price is $7 per unit. 
a. What is the firm's profit-maximizing output level?
b. Is the industry in long-run equilibrium? Explain.

A Firm Sells Its Output in a Competitive Market The Market Price Is $7 Per Unit