The following table shows the output and total cost for a firm in a purely competitive industry Output TC AC MC 0 40 1 95 2 115 3 130 4 150 5 175 6 210 7 260 8 330 Is the firm operating in the short-run or long run? Give a reason to your answer

The following table shows the output and total cost for a firm in a purely competitive industry Output TC AC MC 0 40 1 95 2 115 3 130 4 150 5 175 6 210 7 260 8 330 Is the firm operating in the short-run or long run? Give a reason to your answer

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter8: Perfect Competition

Section: Chapter Questions

Problem 36CTQ: Why will losses for firms in a perfectly competitive industry tend to vanish in the long run?

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Question

The following table shows the output and total cost for a firm in a purely competitive industry

Output	TC	AC	MC
0	40
1	95
2	115
3	130
4	150
5	175
6	210
7	260
8	330

Is the firm operating in the short-run or long run? Give a reason to your answer

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