Consider the following figure for a perfectly competitive firm in the short run. Price, Costs MC ATC AVC 30 26 20 12 10 8 12 21 30 32 40 Output Suppose the industry price is $20. If the firm shuts down production, then its loss is equal to $420 $180 $360 $240
Consider the following figure for a perfectly competitive firm in the short run. Price, Costs MC ATC AVC 30 26 20 12 10 8 12 21 30 32 40 Output Suppose the industry price is $20. If the firm shuts down production, then its loss is equal to $420 $180 $360 $240
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
![Consider the following figure for a perfectly competitive firm in the short run.
Price, Costs
MC
ATC
AVC
30
26
20
12
10
12
21
30 32
40
Output
Suppose the industry price is $20. If the firm shuts down production, then its loss is equal to
$420
$180
$360
$240](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F889b55a3-4b0d-4f2a-8b5e-b4e693e967b2%2F7934eb03-e42e-474a-b2de-6961ab0ec798%2F7d37fkl_processed.png&w=3840&q=75)
Transcribed Image Text:Consider the following figure for a perfectly competitive firm in the short run.
Price, Costs
MC
ATC
AVC
30
26
20
12
10
12
21
30 32
40
Output
Suppose the industry price is $20. If the firm shuts down production, then its loss is equal to
$420
$180
$360
$240
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