Market Representative Firm MC a MR = P $3.50– - АТС b $2.50. AVC 50,000 350 400 Quantity (Q) Output (Q) The diagram above depicts overall market supply and demand on the left, and the cost curves for a representative firm supplying in that market on the right. At the price $3.50, the firm: should shutdown. is earning a negative economic profit (loss). O is making neither a profit nor a loss. It is breaking even. O is earning a positive economic profit. Price $$

Market Representative Firm MC a MR = P $3.50– - АТС b $2.50. AVC 50,000 350 400 Quantity (Q) Output (Q) The diagram above depicts overall market supply and demand on the left, and the cost curves for a representative firm supplying in that market on the right. At the price $3.50, the firm: should shutdown. is earning a negative economic profit (loss). O is making neither a profit nor a loss. It is breaking even. O is earning a positive economic profit. Price $$

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter11: The Firm: Production And Costs

Section: Chapter Questions

Problem 3P

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