Price P₁ P2 P3 PA Quantity MC If the short-run price is. , the perfectly competitive firm will A) P1; break even B) P2; break even C) P3; earn positive economic profit D) P4; earn positive economic profit E) P2; negative economic profit AVC ATC

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
Price
P₁
P2
P3
PA
Quantity
MC
If the short-run price is.
, the perfectly competitive firm will
A) P1; break even
B) P2; break even
C) P3; earn positive economic profit
D) P4; earn positive economic profit
E) P2; negative economic profit
AVC
ATC
Transcribed Image Text:Price P₁ P2 P3 PA Quantity MC If the short-run price is. , the perfectly competitive firm will A) P1; break even B) P2; break even C) P3; earn positive economic profit D) P4; earn positive economic profit E) P2; negative economic profit AVC ATC
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