Sunrise Juice Company Sells Its Output in a Perfectly Competitive

question 17

Essay

Sunrise Juice Company sells its output in a perfectly competitive market.The firm's total cost function is given in the following schedule: $$\begin{array} { c c } \text { Output } & \text { Total Cost } \\\text { (Units) } & ( \$ ) \\\hline 0 & 50 \\10 & 120 \\20 & 170 \\30 & 210 \\40 & 260 \\50 & 330 \\60 & 430\end{array}$$ 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-tun equilibrium? Justify your answer.

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Definitions:

Judgment

A formal decision or conclusion by a judge or court at the end of a lawsuit.

Legal Partnership

A business structure where two or more individuals manage and operate a business in accordance with the laws and regulations, sharing profits and liabilities.

Public-Private Partnership

A cooperative arrangement between one or more public sectors and private sectors, aimed at funding, designing, implementing, and operating services or infrastructure.

Joint Application

A request or submission made by two or more parties together, often seen in financial or legal contexts, such as loan applications or patents.