Answer it correctly please. Give reason. I Figure ISuppose that a firm in a perfectly competitive market has the following cost curves:Price13+12110MCATCAVC636.31-1236.9 10 11Deantity(Attention: If you can't see Figure 1. please click here to download and view the image. Thank you.)Refer to Figure 1. If the market price is $5.28, the firm will earnO positive economic profits in the short run.O negative economic profits and shut down.zero economic profits in the short run.O negative economic profits in the short run but remain in business.

A firm in the perfectly competitive firm produces at MC=P if P>min(AVC). min(AVC)=$4.5 so the…

Suppose that a firm in a perfectly competitive market has the following cost curves: 13- 12 11 10 MC ATC AVC 1. 2 3 89 10 11 (Attention: If you can't see Figure 1. please click here to download and view the Refer to Figure 1. If the market price is $5.28, the firm will earn O positive economic profits in the short run. O negative economic profits and shut down. O zero economic profits in the short run. O negative economic profits in the short run but remain in business.

Suppose that a firm in a perfectly competitive market has the following cost curves: 13- 12 11 10 MC ATC AVC 1. 2 3 89 10 11 (Attention: If you can't see Figure 1. please click here to download and view the Refer to Figure 1. If the market price is $5.28, the firm will earn O positive economic profits in the short run. O negative economic profits and shut down. O zero economic profits in the short run. O negative economic profits in the short run but remain in business.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter12: Firms In Perfectly Competitive Markets

Section: Chapter Questions

Problem 13P

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Similar questions

Firms ill a perfectly competitive market are said to be price takers that is, once the market determines an equilibrium price for the product, firms must accept this price. If you sell a product in a perfectly competitive market, but you are not happy with its price, would you raise the price, even by a cent?
A computer company produces affordable, easy-to-use home computer systems and has fixed costs of 250. The marginal cost of producing computers is 700 for the first computer, 250 for the second, 300 for the third, 350 for the fourth, 430 for the fifth, 450 for the sixth, and 500 for the seventh. Create a table that shows the companys output, total cost, marginal cost, average cost, variable cost, and average variable cost. At what price is the zero-profit point? At what price is the shutdown point? If the company sells the computers for 500, is it making a profit or a loss? How big is the profit or loss? Sketch a graph with AC, MC, and AVG curves to illustrate your answer and show the profit or loss. If the firm sells the computers for 300, is it making a profit or a loss? How big is the profit or loss? Sketch a graph with AC, MC, and AVG curves to illustrate your answer and show the profit or loss.
What two lines on a cost curve diagram intersect at the zero-profit point?
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