Sunrise Juice Company Sells Its Output in a Perfectly Competitive

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.