Consider a perfectly competitive market depicted by the two figures below: (on the left) the industry supply and demand and (on the right) the marginal cost (MC), average total cost (ATC), and the marginal revenue (MR) for an individual firm in the market. Industry Price per unit S Representative firm MC ATC d = MR 9 Based on the figures above, firms that are operating in this market make continues, economic profits, and as long as this a. positive; the industry supply curve will shift to the left b. zero; new firms will not enter the market and existing firms will not leave either c. positive; new firms will enter the market and existing firms will not leave O d. negative; new firms will not enter the market and existing firms will leave

Consider a perfectly competitive market depicted by the two figures below: (on the left) the industry supply and demand and (on the right) the marginal cost (MC), average total cost (ATC), and the marginal revenue (MR) for an individual firm in the market. Industry Price per unit S Representative firm MC ATC d = MR 9 Based on the figures above, firms that are operating in this market make continues, economic profits, and as long as this a. positive; the industry supply curve will shift to the left b. zero; new firms will not enter the market and existing firms will not leave either c. positive; new firms will enter the market and existing firms will not leave O d. negative; new firms will not enter the market and existing firms will leave

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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