Answer
a) Either 5 or 6 units
b) Please see the table and graph. The two curves cross at 5.5.
c) The firm is in a competitive industry, and the industry is not in a long run equilibrium.
Work Step by Step
a) Please see the table. Profit is maximized when only 5 or 6 units are made.
b) This is the average of the two possible quantities.
c) The average total cost curve intersects the marginal cost curve at a different point than the minimum point on the average total cost curve.
