In a short-run perfectly competitive market of tomatoes, when P=$9, firm X produces 0 and firm Y produces 10 tons; when P=$10, firm X produces 5 tons and firm Y produces 15 tons. The following relationship must be correct or incorrect? $10 > (lowest point of AC in X) > (lowest point in AVC in X) > (lowest point in AC in Y) > $9 > (lowest point of AVC in Y)
In a short-run perfectly competitive market of tomatoes, when P=$9, firm X produces 0 and firm Y produces 10 tons; when P=$10, firm X produces 5 tons and firm Y produces 15 tons. The following relationship must be correct or incorrect? $10 > (lowest point of AC in X) > (lowest point in AVC in X) > (lowest point in AC in Y) > $9 > (lowest point of AVC in Y)
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 5CQQ
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