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ATCPriceMCAVC8410 11 12 13QuantityThe graph shows the cost curves of a firm in a competitive industry. Assume that all frms in the industry have identical cost curves. Theprice in this market in the long run is SK 11/21 >o SUBMIT ANSWER8OF 21QUESTIONS COMPLETEDMacBook Pro

Question
ATC
Price
MC
AVC
8
4
10 11 12 13
Quantity
The graph shows the cost curves of a firm in a competitive industry. Assume that all frms in the industry have identical cost curves. The
price in this market in the long run is S
K 11/21 >
o SUBMIT ANSWER
8OF 21QUESTIONS COMPLETED
MacBook Pro
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ATC Price MC AVC 8 4 10 11 12 13 Quantity The graph shows the cost curves of a firm in a competitive industry. Assume that all frms in the industry have identical cost curves. The price in this market in the long run is S K 11/21 > o SUBMIT ANSWER 8OF 21QUESTIONS COMPLETED MacBook Pro

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Step 1

In Perfect competition market, MR and AR curve coincides each other and is parallel to X-axis due to the fact that the firms charges the same price for any number of qty sold.

The Equilibrium qty is fixed where the MC curve cuts MR curve from below.

And in the long run, the firs earns the normal profits i.e. in the long run Average revenue and average total cost is same i.e. coincides each oth...

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