5. Figure: A Perfectly Competitive Firm in the Short RunPriceМС АТСMRAVCFEQuantity (per period)Reference: Ref 12-11(Figure: A Perfectly Competitive Firm in the Short Run) Look at the figure A Perfectly Competitive Firm inthe Short Run. The firm will produce in the short run if the price is:Oa. greater than point E.Ob. at least as high as point F.Oc. at least as high as point P.Od. greater than point N.

In perfectly competitive market, firms are price takers. Firms do not have any control over the…

5. Figure: A Perfectly Competitive Firm in the Short Run Price MC ATC G -MR AVC E N P W B D Quantity (per period) Reference: Ref 12-11 (Figure: A Perfectly Competitive Firm in the Short Run) Look at the figure A Perfectly Competitive the Short Run. The firm will produce in the short run if the price is: Oa. greater than point E. Ob. at least as high as point F. Oc. at least as high as point P. Od oreater than point N