One more question is, A profit maximizing firm faces market price of p2. What are their profits? A frimfaces amarketpricebetweenP1 and P2.What will1. Q3this firmdo in the2. 0short run?3. КееpproducingA frimfaces amarket4. ShutDownpricebetweenP1 and P2.What will5. Exitthis firmdo in the6. (P3-P2)*(Q3-Q2)long run?A firm7. Q2faces amarketpricebelow P1.In the longrun, whatshould this-firm do?<><> Cost andRevenueMCPAATCP3AVCP2P1Q1QaQuantityWhen themarketprice is P3,what levelof outputwill theprofit-.maximizingfirmproduce?<>

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One more question is, A profit maximizing firm faces market price of p2. What are their profits?

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

One more question is,

A profit maximizing firm faces market price of p2. What are their profits?

A frim
faces a
market
price
between
P1 and P2.
What will
1. Q3
this firm
do in the
2. 0
short run?
3. Кееp
producing
A frim
faces a
market
4. Shut
Down
price
between
P1 and P2.
What will
5. Exit
this firm
do in the
6. (P3-P2)*
(Q3-Q2)
long run?
A firm
7. Q2
faces a
market
price
below P1.
In the long
run, what
should this-
firm do?
<>
<>

Cost and
Revenue
MC
PA
ATC
P3
AVC
P2
P1
Q1
Qa
Quantity
When the
market
price is P3,
what level
of output
will the
profit-.
maximizing
firm
produce?
<>

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