By referring to the image insert: A firm has a pure and perfect competition market with the following cost structure: If the market price is $4, the firm: Will produce 2 units in the short term and will leave the market in the long term. • b) will produce 4 units in the short term and will leave the market in the long term. • c) will close in the short term and leave the market in the long term. • d) will produce 3 units in the short term and will leave the market in the long term.
By referring to the image insert: A firm has a pure and perfect competition market with the following cost structure: If the market price is $4, the firm: Will produce 2 units in the short term and will leave the market in the long term. • b) will produce 4 units in the short term and will leave the market in the long term. • c) will close in the short term and leave the market in the long term. • d) will produce 3 units in the short term and will leave the market in the long term.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
7.
PLEASE I NEED HELP NOW!! :))) just answer the letter.
By referring to the image insert:
A firm has a pure and perfect competition market with the following cost structure:
If the market price is $4, the firm:
Will produce 2 units in the short term and will leave the market in the long term.
• b) will produce 4 units in the short term and will leave the market in the long term.
• c) will close in the short term and leave the market in the long term.
• d) will produce 3 units in the short term and will leave the market in the long term.
Transcribed Image Text:Quantity
1
2
3
4
5
Average
total costs
10
6
5.3
6
8
Average
variable costs
5
3.5
3.7
4.75
7
Marginal cost
5
2
4
8
16
Transcribed Image Text:Quantity
1
2
3
4
5
Average
total costs
10
6
5.3
6
8
Average
variable costs
5
3.5
3.7
4.75
7
Marginal cost
5
2
4
8
16
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