If, in a competitive market, the market price is $8 but a firm is charging a price of$12 per unit, then the firmOA. will break even.OB. will sell 00 units.C. is making a profitD. will not sell any outputClick to select your answer.Priceandcost$1200200500700MCMarketpriceQuantity

A market that is competitive includes numerous customers and sellers, comparable or identical items,…

If, in a competitive market, the market price is $8 but a firm is charging a price of $12 per unit, then the firm OA. will break even. OB. will sell 00 units. OC. is making a profit OD. will not sell any output

If, in a competitive market, the market price is $8 but a firm is charging a price of $12 per unit, then the firm OA. will break even. OB. will sell 00 units. OC. is making a profit OD. will not sell any output

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

Chapter10: Price-searcher Markets With Low Entry Barriers

Section: Chapter Questions

Problem 15CQ

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Question

If, in a competitive market, the market price is $8 but a firm is charging a price of
$12 per unit, then the firm
OA. will break even.
OB. will sell 00 units.
C. is making a profit
D. will not sell any output
Click to select your answer.
Price
and
cost
$12
00
200
500
700
MC
Market
price
Quantity

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