FIGURE 1 MC AVC FIGURE 1B. INDUSTRY Q FIGURE 1A. A FIRM a. Identify the profit maximizing level of output (q*) and the price in this market. b. Is the fim eaming economic profit/loss at profit-maximizing level of quantity (q*)? Also explain how you identify. (without explanation your answer will not be accepted). c. Should the firm continue to produce in the short run or leave the market? Support your answer with proper reasoning (answers without justification will not be accepted). d. Briefly explain what you expect will happen in the long run in this industry. In other words, what will happen with the fim's profit/loss in the long run?

FIGURE 1 MC AVC FIGURE 1B. INDUSTRY Q FIGURE 1A. A FIRM a. Identify the profit maximizing level of output (q) and the price in this market. b. Is the fim eaming economic profit/loss at profit-maximizing level of quantity (q)? Also explain how you identify. (without explanation your answer will not be accepted). c. Should the firm continue to produce in the short run or leave the market? Support your answer with proper reasoning (answers without justification will not be accepted). d. Briefly explain what you expect will happen in the long run in this industry. In other words, what will happen with the fim's profit/loss in the long run?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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