P (dollars) MC ATC 6. AVC 4 2 Q (units) 300 600 900 Consider the following cost schedule for many firms in perfectly competitive market. If the market price is $4, then the firm should be to maximize profit and profit will O shut-down; negative O produce 600 units; negative O produce 600 units; positive O produce 600 units; zero

P (dollars) MC ATC 6. AVC 4 2 Q (units) 300 600 900 Consider the following cost schedule for many firms in perfectly competitive market. If the market price is $4, then the firm should be to maximize profit and profit will O shut-down; negative O produce 600 units; negative O produce 600 units; positive O produce 600 units; zero

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter23: Profit Maximization

Section: Chapter Questions

Problem 5E

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