Answered: As shown in Exhibit 7-12, if the firm's…

As shown in Exhibit 7-12, if the firm's price is OD, the firm will supply a. zero units of output because it is unprofitable. O b. Z units and make an economic profit.

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter8: Perefect Competition

Section: Chapter Questions

Problem 5SQP

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Question

J 7

Exhibit 7-12 Marginal revenue and cost per unit curves
Price
and
costs
per
unit
(dollars)
A
0
H
-GO
F
K
X Y Z
Quantity of output
(units per week)
MC
MR-
ATC
AVC
As shown in Exhibit 7-12, if the firm's price is OD, the firm will supply
a. zero units of output because it is unprofitable.
O b. Z units and make an economic profit.
c. X units and incur a loss.
d. Y units and break even.

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