19 Market Representative Firm MC of A a MR = P $7 1. ATC $5 AVC $2 D1 18,000 70 100 115 Quantity (Q) Output (Q) The diagram above shows a Perfectly Competitive market on the left, and a representative firm supplying in that market on the right. If the entry of new firms into the market caused the equilibrium Price to decrease to $5, the representative firm would: Select one: a. earn a positive Economic Profit. Price
19 Market Representative Firm MC of A a MR = P $7 1. ATC $5 AVC $2 D1 18,000 70 100 115 Quantity (Q) Output (Q) The diagram above shows a Perfectly Competitive market on the left, and a representative firm supplying in that market on the right. If the entry of new firms into the market caused the equilibrium Price to decrease to $5, the representative firm would: Select one: a. earn a positive Economic Profit. Price
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
![19
Market
Representative Firm
MC
i of
A
$7
a
MR = P
АТС
b
$5
AVC
$2
D1
18,000
70
100 115
Quantity (Q)
Output (Q)
The diagram above shows a Perfectly Competitive market on the left, and a representative firm supplying in that market on the right. If
the entry of new firms into the market caused the equilibrium Price to decrease to $5, the representative firm would:
Select one:
а.
earn a positive Economic Profit.
b. earn a negative Economic Profit.
c. shut down in the short-run.
d.
earn zero Economic Profit.
Price
$$$](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0ab994c8-cff9-4fe5-97d8-93d0776b49d9%2Fc0f2fb3c-05af-4a5b-b810-69315cdba6e6%2Fk71w66b_processed.png&w=3840&q=75)
Transcribed Image Text:19
Market
Representative Firm
MC
i of
A
$7
a
MR = P
АТС
b
$5
AVC
$2
D1
18,000
70
100 115
Quantity (Q)
Output (Q)
The diagram above shows a Perfectly Competitive market on the left, and a representative firm supplying in that market on the right. If
the entry of new firms into the market caused the equilibrium Price to decrease to $5, the representative firm would:
Select one:
а.
earn a positive Economic Profit.
b. earn a negative Economic Profit.
c. shut down in the short-run.
d.
earn zero Economic Profit.
Price
$$$
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