The graph below summarizes the demand and costs for a firm that operates in a perfectly competitive market.Instruction: Use the nearest whole numbers on the graph when calculating numerical responses below.4844-MCATC40-36-32-D'=MR2824-AVC20-16-12-AFC4 -12371011Quantity%24 g. What is the firm's profit if it shuts down?Instruction: If the firm is taking a loss, enter this as negative (-) profits.h. In the long run, should this firm continue to operate or shut down?(Click to select)

Answer to the question is as follows :

The graph below summarizes the demand and costs for a firm that operates in a perfectly competitive market. Instruction: Use the nearest whole numbers on the graph when calculating numerical responses below.

The graph below summarizes the demand and costs for a firm that operates in a perfectly competitive market. Instruction: Use the nearest whole numbers on the graph when calculating numerical responses below.

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

The graph below summarizes the demand and costs for a firm that operates in a perfectly competitive market.
Instruction: Use the nearest whole numbers on the graph when calculating numerical responses below.
48
44-
MC
ATC
40-
36-
32-
D'=MR
28
24-
AVC
20-
16-
12-
AFC
4 -
1
2
3
7
10
11
Quantity
%24

g. What is the firm's profit if it shuts down?
Instruction: If the firm is taking a loss, enter this as negative (-) profits.
h. In the long run, should this firm continue to operate or shut down?
(Click to select)

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