(Figure: Determining Profit) At price F, which of the following is NOT true for this firm in perfect competition? Price and Cost B ED HJ MC ATC AFC AVC Output The market is in long-run equilibrium. Marginal revenue is equal to marginal cost. Economic profits are $0. The firm will have to shut down soon if the market price does not increase.

ECON MICRO
5th Edition
ISBN:9781337000536
Author:William A. McEachern
Publisher:William A. McEachern
Chapter8: Perfect Competition
Section: Chapter Questions
Problem 5.9P
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(Figure: Determining Profit) At price F, which of the following is NOT true for this firm in perfect competition?
and Cost
Price
T
I
4
I
I
I
I
B
I
I
HJ
MC
ATC
AFC
AVC
Output
The market is in long-run equilibrium.
Marginal revenue is equal to marginal cost.
Economic profits are $0.
The firm will have to shut down soon if the market price does not increase.
Transcribed Image Text:(Figure: Determining Profit) At price F, which of the following is NOT true for this firm in perfect competition? and Cost Price T I 4 I I I I B I I HJ MC ATC AFC AVC Output The market is in long-run equilibrium. Marginal revenue is equal to marginal cost. Economic profits are $0. The firm will have to shut down soon if the market price does not increase.
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