31. Refer to the diagram below for a purely competitive producer. The firm should shut down inthe short run if the price is:PAUP392P0a) between P1 and P2b) between P3 and P4c) Above P4-d) between P2 and P3DMCATCAVCo

In perfect competition , Profit is minimised where Price is equal to MC. MC is the marginal cost.…

31. Refer to the diagram below for a purely competitive producer. The firm should shut down in the short run if the price is: P P AU P3 92 P 0 a) between P1 and P2 b) between P3 and P4 c) Above P4 d) between P2 and P3 D MC ATC AVC o

31. Refer to the diagram below for a purely competitive producer. The firm should shut down in the short run if the price is: P P AU P3 92 P 0 a) between P1 and P2 b) between P3 and P4 c) Above P4 d) between P2 and P3 D MC ATC AVC o

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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31. Refer to the diagram below for a purely competitive producer. The firm should shut down in
the short run if the price is:
P
AU
P3
92
P
0
a) between P1 and P2
b) between P3 and P4
c) Above P4-
d) between P2 and P3
D
MC
ATC
AVC
o

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Suppose a firm operating in a competitive market has the following cost curves: a. $9 b. $50 PRICE c. $30 O d. $15 20 18 16 14 10 878 6 st 4 2 12 MC Refer to Figure 14-2. If the market price is $10, what is the firm's short-run economic profit? ATC 3 4 5 6 7 8 9 10 QUANTITY
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