Figure 14-1 Suppose that a firm in a competitive market has the following cost curves: PRICE 20 18 16 14 13 8 6 4 2 MC 1 2 3 QUANTITY Refer to Figure 14-1. The firm will earn a positive economic profit in the short run if the market price is O a. exactly $13. O b. less than $13 but more than $6. O c. above $13. O d. less than $6. ATC AVC 5
Figure 14-1 Suppose that a firm in a competitive market has the following cost curves: PRICE 20 18 16 14 13 8 6 4 2 MC 1 2 3 QUANTITY Refer to Figure 14-1. The firm will earn a positive economic profit in the short run if the market price is O a. exactly $13. O b. less than $13 but more than $6. O c. above $13. O d. less than $6. ATC AVC 5
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter13: Firms In Competitive Markets
Section: Chapter Questions
Problem 7PA
Related questions
Question
![Figure 14-1
Suppose that a firm in a competitive market has the following cost curves:
PRICE
20
18
16
14
6
4
2
MC
1
2
3
QUANTITY
Refer to Figure 14-1. The firm will earn a positive economic profit in the short run if the market price is
O a. exactly $13.
O b. less than $13 but more than $6.
O c. above $13.
O d. less than $6.
4
ATC
AVC
5](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb5468310-450b-4187-9808-ddb47cd17fbe%2F7483ad5f-eda3-4af7-a4d7-d7c014d93fca%2Flevq58m_processed.png&w=3840&q=75)
Transcribed Image Text:Figure 14-1
Suppose that a firm in a competitive market has the following cost curves:
PRICE
20
18
16
14
6
4
2
MC
1
2
3
QUANTITY
Refer to Figure 14-1. The firm will earn a positive economic profit in the short run if the market price is
O a. exactly $13.
O b. less than $13 but more than $6.
O c. above $13.
O d. less than $6.
4
ATC
AVC
5
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