Show graphically how following situation affects company and market: A competitive company produces 100 units at a price P = $10 and its minimum cost is $8 (zero or null profit). If price is considered a high price in market: (a) What happens to supply curve in the market? b) What happens to equilibrium price and quantity in market? c) What happens to equilibrium price and quantity in firm?

Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter9: Price Takers And The Competitive Process
Section: Chapter Questions
Problem 16CQ
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Show graphically how following situation affects company and market:

A competitive company produces 100 units at a price P = $10 and its minimum cost is $8 (zero or null profit). If price is considered a high price in market:
(a) What happens to supply curve in the market?
b) What happens to equilibrium price and quantity in market?
c) What happens to equilibrium price and quantity in firm?

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