Figure 14-5 Suppose a firm operating in a competitive market has the following cost curves: P7 P6 B P3 P2 Pl ↑ Price MC ATC Q1 Q2 Q3 Q4 Q5 AVC Quantity Refer to Figure 14-5. In the short run,if the market price is higher than P4 but less than P6, individual firms in a competitive industry will earn positive profits. zero profits. losses but will remain in business. O losses and will shut down.

ENGR.ECONOMIC ANALYSIS
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Author:NEWNAN
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Chapter1: Making Economics Decisions
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Explain all option with explantion plz......
Figure 14-5
Suppose a firm operating in a competitive market has the
following cost curves:
P7
P6
B
P3
P2
Pl
↑ Price
MC
ATC
Q1 Q2 Q3 Q4
Q5
AVC
Quantity
Refer to Figure 14-5. In the short run,if the market price
is higher than P4 but less than P6, individual firms in a
competitive industry will earn
positive profits.
zero profits.
losses but will remain in business.
O losses and will shut down.
Transcribed Image Text:Figure 14-5 Suppose a firm operating in a competitive market has the following cost curves: P7 P6 B P3 P2 Pl ↑ Price MC ATC Q1 Q2 Q3 Q4 Q5 AVC Quantity Refer to Figure 14-5. In the short run,if the market price is higher than P4 but less than P6, individual firms in a competitive industry will earn positive profits. zero profits. losses but will remain in business. O losses and will shut down.
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