story of a company in a perfectly competitive market #1 Essay Answers

story of a company in a perfectly competitive market #1 Essay Answers  – #1 Essay Answers 

Astro Computers makes onboard vehicle control computers for the Tesla. The production department has gathered data on the costs of several yearly production levels and asked you to help interpret these for them.

a. The data for Astro appear in the graph below. The COO asks what production level he should set for the coming year, if Astro operates in a perfectly competitive market.

b. Is Astro earning “excess profit” (explain what that means if you think they are) and how other firms will react when they see Astro’s performance?

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