Answered: At which point in Figure 9-7 would a…

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At which point in Figure 9-7 would a perfectly competitive firm earn a positive economic profit? OA B O C O D OF

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter8: Perfect Competition

Section: Chapter Questions

Problem 36CTQ: Why will losses for firms in a perfectly competitive industry tend to vanish in the long run?

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Question

Dollars
O A
B
C
O
OF
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F
At which point in Figure 9-7 would a perfectly competitive firm earn a positive economic profit?
Figure 9-7
MC
ATC
AVC
Output

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Why will losses for firms in a perfectly competitive industry tend to vanish in the long run?
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