In a perfectly competitive market, the market price is $2, and firms are producing 100 units. At a quantity of 100 units, average total cost is $4, and average variable cost is $3. In the short run, firms will: Group of answer choices exit the market, increasing the price to $3. shut down, but the price will remain at $2. enter the market, increasing the price to $4. exit the market, increasing the price to $4.
In a perfectly competitive market, the market price is $2, and firms are producing 100 units. At a quantity of 100 units, average total cost is $4, and average variable cost is $3. In the short run, firms will: Group of answer choices exit the market, increasing the price to $3. shut down, but the price will remain at $2. enter the market, increasing the price to $4. exit the market, increasing the price to $4.
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter8: Perefect Competition
Section: Chapter Questions
Problem 17SQ
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In a perfectly competitive market, the market price is $2, and firms are producing 100 units. At a quantity of 100 units, average total cost is $4, and average variable cost is $3. In the short run, firms will:
Group of answer choices
exit the market, increasing the price to $3.
shut down, but the price will remain at $2.
enter the market, increasing the price to $4.
exit the market, increasing the price to $4.
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