5. Suppose that a competitive firm has the following cost curves: ↑ Price 13 636 45³1 12 3 4 5 MC 6 7 8 ATC AVC 9 10 11 Quantity a) List the market price at which the firm will break even: b) List one market price at which the firm will earn positive profit: c) List one market price at which the firm will operate in the short run, but exit the market in the long run:

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5. Suppose that a competitive firm has the following cost curves:
↑ Price
13
636
45³
12
3
4
MC
6
5
7
8
ATC
AVC
9
10 11
Quantity
a) List the market price at which the firm will break even:
b) List one market price at which the firm will earn positive profit:
c) List one market price at which the firm will operate in the short run, but exit the market in
the long run:
Transcribed Image Text:5. Suppose that a competitive firm has the following cost curves: ↑ Price 13 636 45³ 12 3 4 MC 6 5 7 8 ATC AVC 9 10 11 Quantity a) List the market price at which the firm will break even: b) List one market price at which the firm will earn positive profit: c) List one market price at which the firm will operate in the short run, but exit the market in the long run:
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