On x and y axes, draw ATC, AVC, and MC curves and MR curve of a perfectly competitive firm that ismaking aa) profitb) lossc) breaks even Note: Draw a separate diagram for each. 3. On x and y axes, draw ATC, AVC and MC curves and MR curve of a perfectly competitive firm that ismaking aа) profitb) lossc) breaks evenNote: Draw separate diagram for each.

ATC/AC is the average total curve. It is a U shaped curve. AVC is the average variable curve. It is…

Answered: On x and y axes, draw ATC, AVC, and MC…

On x and y axes, draw ATC, AVC, and MC curves and MR curve of a perfectly competitive firm that is making a a) profit b) loss c) breaks even Note: Draw a separate diagram for each.

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

On x and y axes, draw ATC, AVC, and MC curves and MR curve of a perfectly competitive firm that is

making a

a) profit
b) loss
c) breaks even

Note: Draw a separate diagram for each.

3. On x and y axes, draw ATC, AVC and MC curves and MR curve of a perfectly competitive firm that is
making a
а) profit
b) loss
c) breaks even
Note: Draw separate diagram for each.

Definition Definition Amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item

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If the price that a firm with no market power receives is $10, its minimum AVC is $8 and its minimum ATC is $15 then Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a. the firm will make a loss and shut down immediately b. the firm can make a profit c. it will make a loss and choose to continue to produce in the short run d. the firm enjoys increasing returns to scale. e. None of the above.
Question 7 When should a firm shut down? In other words, what is the shut down point for a firm in perfect competition?
Consider the figure below displaying the cost curves of a competitive firm. In the SHORT-run, at p₁ the firm will at p2 the firm will at på the firm will and at p4 the firm will $ P1 P2 P3 P4 ‒‒‒‒‒‒ 91 92 93 94 MC AC AVC 95 A. make normal profit; make no profit; make losses; exit B. make losses; makes supernormal profit; make normal profit; make losses C. make supernormal profit; make normal profit; make losses; shut down D. exit; make normal profit; enter; shut down E. always make some profit
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