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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Question

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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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20 MC I of d P4 ATC AVC P3 P2 a P1 Q, Q2 Q3 Output (Q) The diagram above shows cost curves for a Perfectly Competitive firm. In the short-run, its Short-Run Supply Curve is its MC curve at prices higher than: Select one: а. P4 b. P2 C. P3 d. P1 $$
13 12 11 10 9 2.) Suppose that a firm in a competitive market has the following cost curves: ↑ Price 8 7. 6.36 5. 4.5 4+ 3 2+ 1 1 2 3 4 MC J ATC AVC 5 5 6 7 8 9 10 11 Quantity a.) What price should the firm shut down below? b.) What's the range of prices where the firm would earn negative profit in the short run? c.) Below what price would the firm exit? d.) What range of prices would provide the firm positive profits? e.) At what quantity is ATC minimized? f.) What is the long run equilibrium price? What does each firm earn at that price? If the price is $5 in the short run, what happens in the long run to get the price back to the long-run equilibrium?
Question 26...please solve
QUESTION 26 LA a firm in a perfectly competitive market 44 40 36 32 28 24 20 16 12 8 4 0 0 4 8 12 16 26. If the price falls below $10, the firm will a) make a profit b) shut down production c) produce 14 units Od) break even 20 MC ATC AVC 24 28 32
Answer plzz...
11. The competitive firm should shut down if the price level falls below the OMC = MR Onone of the answers is correct AVC O ATC PARDUO Jan S AFC FOR M