3. Explain under each of the situation, a firm working under a perfectly competitive market would keep on producing or shut down. Show using diagram and also explain the condition thoroughly. a. P=14; AC=16; AVC=10 and Q=40 b. P=10; AC=10; AVC=8 and Q=20

3. Explain under each of the situation, a firm working under a perfectly competitive market would keep on producing or shut down. Show using diagram and also explain the condition thoroughly. a. P=14; AC=16; AVC=10 and Q=40 b. P=10; AC=10; AVC=8 and Q=20

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter9: Perfect Competition

Section9.3: Perfect Competition In The Long Run

Problem 1ST

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3. Explain under each of the situation, a firm working under a perfectly competitive market
would keep on producing or shut down. Show using diagram and also explain the condition
thoroughly.
a. P=14; AC=16; AVC=10 and Q=40
b. P=10; AC=10; AVC=8 and Q=20

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