Question 4 please 1) If ATC is below the MR=P=AR=D line is there a profit or a loss? What will happen in thelong run in the market (In other words, will other firms join the market or exit the market?)2) If ATC is above the MR=P=AR=D line is there a profit or a loss? What will happen in thelong run in the market (In other words, will other firms join the market or exit the market?)3) What rule do economists follow to determine the quantity that should be produced inorder to maximize profit?4) If AVC and ATC are both above the MR=P=AR=D line what will happen in the short-runand the long-run? (Explained at the end of the video).5) If the profit maximizing quantity is 50, the average revenue (AR) is $6 and the averagetotal cost (ATC) is $5, what is the profit? (Reminder: profit = total revenue - total cost)

Perfect competition is a market structure that has a large number of buyers and sellers who have…

Answered: 4) If AVC and ATC are both above the…

4) If AVC and ATC are both above the MR=P=AR=D line what will happen in the short-run and the long-run? (Explained at the end of the video).

Microeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506893

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter9: Price Takers And The Competitive Process

Section: Chapter Questions

Problem 5CQ

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