Price (dolairs per unit) 10 76 A 5 10 15 20 MC ATC Quantity (units) MR bod I a. Find the perfectly competitive price and quantity. b. Is this firm making profits or losses? c. calculate the profit (or the loss) d. based on your previous answer, what is the effect of this on the market equilibrium. (Draw the market equilibrium and show what will happen) e. Draw the long run supply curve for that good and it's relation to this curve.

Price (dolairs per unit) 10 76 A 5 10 15 20 MC ATC Quantity (units) MR bod I a. Find the perfectly competitive price and quantity. b. Is this firm making profits or losses? c. calculate the profit (or the loss) d. based on your previous answer, what is the effect of this on the market equilibrium. (Draw the market equilibrium and show what will happen) e. Draw the long run supply curve for that good and it's relation to this curve.

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter8: Perfect Competition

Section: Chapter Questions

Problem 7.15P

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