a) Using the following graph state the price and quantity the firm will be at if the perfect competition market is in long run equilibrium. Explain why the firm will be at that price an quantity.

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter12: Firms In Perfectly Competitive Markets
Section: Chapter Questions
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1. a) Using the following graph state the price and quantity the firm will be at if the perfect
competition market is in long run equilibrium. Explain why the firm will be at that price and
quantity.
Single Firm
Market
Price and
Cost
Price
SRATC
MC
P2
LRATC
d.
P,
D2
91 2
Quality
0.
Quantity
b) State the conditions that establish the market structure perfect competition, and long run
equilibrium condition and the shut down condition for this market structure.
Transcribed Image Text:1. a) Using the following graph state the price and quantity the firm will be at if the perfect competition market is in long run equilibrium. Explain why the firm will be at that price and quantity. Single Firm Market Price and Cost Price SRATC MC P2 LRATC d. P, D2 91 2 Quality 0. Quantity b) State the conditions that establish the market structure perfect competition, and long run equilibrium condition and the shut down condition for this market structure.
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