P p1 p INDUSTRY Costs - Revenue FIRM D S¹ K P P1 Q 0 0¹ Q MC ATC AR = MR Output Show answer choices A) At price P the firm is unprofitable, but at price P1 the firm is profitable B) A shift rightward of the supply curve (perhaps due to new firms entering the market) increases profits At price P the firm will produce Q (depicted on the right panel) and at price P1 the firm will produce Q1 (depicted on the right panel) D At price P the firm is profitable, but at price P1 the firm is making zero profits (E) The reduction in prices brought about by the rightward shift of supply drags down the firm's MR curve (F) For both panels, the x-axis indicates quantity of output and the amounts Q and Q1 in both panels is the same G) The firm is competing in an oligopolistic market H) The firm is competing in a perfectly competitive market If even more firms enter the market (shifting supply from S1 to some greater supply curve S2) then market price would fall further and the firm's MR curve would fall too. If that were to happen, then the firm would exit the market because it would be making a loss. Feedback incorrect