If the firm is in the situation described in Q. 17 (i.e., continuing to operate in the short-run, but earning negative profits), what will the firm do in the long-run ? Group of answer choices Raise it's prices Exit the market Lower it's quantity produced Lower it's prices to try to sell more
If the firm is in the situation described in Q. 17 (i.e., continuing to operate in the short-run, but earning negative profits), what will the firm do in the long-run ? Group of answer choices Raise it's prices Exit the market Lower it's quantity produced Lower it's prices to try to sell more
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter22: Perfect Competition
Section22.1: The Theory Of Perfect Competition
Problem 4ST
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Q18 solution needed
Question 18
If the firm is in the situation described in Q. 17 (i.e., continuing to operate in the short-run, but earning negative profits), what will the firm do in the long-run ?
Group of answer choices
Raise it's prices
Exit the market
Lower it's quantity produced
Lower it's prices to try to sell more
![Question 17
Refer to Figure 5-1.
At which price range will the firm continue to operate in the short run but earn negative profits?
any price higher than P4
any price higher than P3 but less than P4
any
price higher than P2 but less than P3
any price lower than P1](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe6c0d509-99bd-4164-8c03-8d91cd848496%2F016d3435-15fc-48de-b7ce-02ba9b2c4257%2Ffvtn54_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Question 17
Refer to Figure 5-1.
At which price range will the firm continue to operate in the short run but earn negative profits?
any price higher than P4
any price higher than P3 but less than P4
any
price higher than P2 but less than P3
any price lower than P1
![Suppose a firm operating in a perfectly competitive market has the following cost curves:
Figure 5-1
MC
ATC
P4
P3
P2
Pl
Price
Q1Q2 03 04
Q5
2
AVC
Quantity](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe6c0d509-99bd-4164-8c03-8d91cd848496%2F016d3435-15fc-48de-b7ce-02ba9b2c4257%2F58kkmun_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Suppose a firm operating in a perfectly competitive market has the following cost curves:
Figure 5-1
MC
ATC
P4
P3
P2
Pl
Price
Q1Q2 03 04
Q5
2
AVC
Quantity
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