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FIGURE S-3. ShortRun Marginal Cost $105 Average Total Cost Average Variable Cost $88 $55- 460 1675 600 Refer to Figure 8-3. When the market price equals $105 and the firm sells 675 units of output, what can we conclude about the firm? It is experiencing a loss, but should continue operating temporarily because business conditions may improve. It is earning positive economic profits. O It is earning a normal profit. O It is experiencing a loss and should shut down.

FIGURE S-3. ShortRun Marginal Cost $105 Average Total Cost Average Variable Cost $88 $55- 460 1675 600 Refer to Figure 8-3. When the market price equals $105 and the firm sells 675 units of output, what can we conclude about the firm? It is experiencing a loss, but should continue operating temporarily because business conditions may improve. It is earning positive economic profits. O It is earning a normal profit. O It is experiencing a loss and should shut down.

Microeconomics: Private and Public Choice (MindTap Course List)
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
Chapter8: Costs And The Supply Of Goods
Section: Chapter Questions
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FIGURE S-3 Short-Run Marginal Cost $105 Averoge Total Cost Average Variable Cost $88 $55 460 675 600 Refer to Figure 8-3. When the market price equals $105 and the firm sells 675 units of output, what can we conclude about the firm? It is experiencing a loss, but should continue operating temporarily because business conditions may improve. It is earning positive economic profits. It is earning a normal profit. It is experiencing a loss and should shut down.
Transcribed Image Text:FIGURE S-3 Short-Run Marginal Cost $105 Averoge Total Cost Average Variable Cost $88 $55 460 675 600 Refer to Figure 8-3. When the market price equals $105 and the firm sells 675 units of output, what can we conclude about the firm? It is experiencing a loss, but should continue operating temporarily because business conditions may improve. It is earning positive economic profits. It is earning a normal profit. It is experiencing a loss and should shut down.
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