Please see the attached37 The following graph depicts the various cost curves for a representative competitive firm producing quantity Q1:LRACMCSRACQ1Quantity per periodRefer to the above graph to answer this question. If the price of the product is P1, what does the graph suggest?Hint: What are Economic Profits VS Normal Profits?Select one:O a. The firm is not making economic profits in either the short run or the long run.b. The firm is making economic profits in the short run but not in the long run.O c. The firm is making economic profits in both the short run and the long run.O d. The firm is making economic profits in the long run but not in the short run.

Normal Profit: The normal profit is that amount of profit that keeps the form in the market. The…

The following graph depicts the various cost curves for a representative competitive firm producing quantity Q1: LRAC MC SRAC P1 01 Quantity per period Refer to the above graph to answer this question. If the price of the product is P1, what does the graph suggest?

The following graph depicts the various cost curves for a representative competitive firm producing quantity Q1: LRAC MC SRAC P1 01 Quantity per period Refer to the above graph to answer this question. If the price of the product is P1, what does the graph suggest?

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

Please see the attached37

The following graph depicts the various cost curves for a representative competitive firm producing quantity Q1:
LRAC
MC
SRAC
Q1
Quantity per period
Refer to the above graph to answer this question. If the price of the product is P1, what does the graph suggest?
Hint: What are Economic Profits VS Normal Profits?
Select one:
O a. The firm is not making economic profits in either the short run or the long run.
b. The firm is making economic profits in the short run but not in the long run.
O c. The firm is making economic profits in both the short run and the long run.
O d. The firm is making economic profits in the long run but not in the short run.

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