Sunrise Juice Company Sells Its Output in a Perfectly Competitive

question 8

Essay

Sunrise Juice Company sells its output in a perfectly competitive market.The firm's total cost function is given in the following schedule:
Total costs include a "normal" return on the time (labor services)and capital that the owner has invested in the firm.The prevailing market price is $7 per unit.
(a) Prepare (i) marginal cost and (ii) average total cost schedules for the firm.
(b) What is the firm's profit maximizing output level?
(c) Is the industry in long-run equilibrium? Justify your answer.

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Definitions:

Emotion-Focused Coping

A method of dealing with stress by managing emotions rather than confronting the problem directly.

Problem-Focused Coping

Attempting to alleviate stress directly—by changing the stressor or the way we interact with that stressor.

Emotion-Focused Coping

A strategy for managing stress by working to change one’s emotional response to a stressor rather than changing the stressor itself.

Mindfulness Meditation

A practice of concentrated focus upon a sound, object, visualization, the breath, movement, or attention itself in order to increase awareness of the present moment, reduce stress, promote relaxation, and enhance personal and spiritual growth.