3. Firm Alpha is a price taker. Its marginal cost is MC(q), average cost is AC(q), and average variable cost is AVC(q). At the current short-run price P, firm Alpha optimally chooses to produce q=100, but it has a negative profit. Then we can conclude that AMC>P B AVC>P>AC CAC>AVC>P DP>AVC> AC E AC>P>AVC

3. Firm Alpha is a price taker. Its marginal cost is MC(q), average cost is AC(q), and average variable cost is AVC(q). At the current short-run price P, firm Alpha optimally chooses to produce q=100, but it has a negative profit. Then we can conclude that AMC>P B AVC>P>AC CAC>AVC>P DP>AVC> AC E AC>P>AVC

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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