Figure 4 P4 P3 P2 PI I Price B C Q1Q2 Q3 Q4 D MC ATC Refer to Figure 4. When price falls from P3 to P1, the firm finds that it A should shut down immediately AVC Quantity should produce Q1 units of output decreases its fixed costs should produce Q3 units of output

Figure 4 P4 P3 P2 PI I Price B C Q1Q2 Q3 Q4 D MC ATC Refer to Figure 4. When price falls from P3 to P1, the firm finds that it A should shut down immediately AVC Quantity should produce Q1 units of output decreases its fixed costs should produce Q3 units of output

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Figure 4
P4
P3
P2
PI
I
Price
B
C
D
Q1Q2 Q3 Q4
MC
Q5
ATC
Refer to Figure 4. When price falls from P3 to P1, the firm finds that it
A should shut down immediately
AVC
Quantity
should produce Q1 units of output
decreases its fixed costs
should produce Q3 units of output

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Refer to Figure 14-4. When price falls from P3 to P1, the firm finds that it a. should produce Q1 units of output. b. decreases its fixed costs. c. should shut down immediately. d. should produce Q3 units of output. P4 2 P3 P2 PL Price F 0102 03 04 Q5 MC 4 AVC ATC