Firms producing an identical product in a competitive market are producing at an output level that maximizes profit. The current market price is $4.50 per unit, and the firms are producing at a long-run average cost of $5.00 per unit. Over the long run, one should expect

Three pounds of material a are required for each unit produced. the company has a policy of maintaining a stock of material a on hand at the end of each quarter equal to 30% of the next quarter's production needs for material a. a total of 35,000 pounds of material a are on hand to start the year. budgeted purchases of material a for the second quarter would be: