Don't use chatgpt, I will 5 upvotes Refer to Figure 14-1. If the market price is P2, in the short run, the perfectly competitive firm will earn ◻ positive economic profits. negative economic profits but will try to remain open. zero economic profits. negative economic profits and will shut down. 1Price10MCATC8AVC60- Pl.. P2- P3- P41 2 3 4 5 67 8 QuantityRefer to Figure 14-1. If the market price is P2, in the short run, the perfectlycompetitive firm will earnOpositive economic profits.negative economic profits but will try to remain open.zero economic profits.O negative economic profits and will shut down.A

In the short run, if the market price is P2, the perfectly competitive firm will earn zero economic…

1Price 10 MC ATC 8 AVC 60 - Pl .. P2 - P3 - P4 1 2 3 4 5 6 7 8 Quantity Refer to Figure 14-1. If the market price is P2, in the short run, the perfectly competitive firm will earn Opositive economic profits. negative economic profits but will try to remain open. zero economic profits. O negative economic profits and will shut down. A

1Price 10 MC ATC 8 AVC 60 - Pl .. P2 - P3 - P4 1 2 3 4 5 6 7 8 Quantity Refer to Figure 14-1. If the market price is P2, in the short run, the perfectly competitive firm will earn Opositive economic profits. negative economic profits but will try to remain open. zero economic profits. O negative economic profits and will shut down. A

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 33CTQ: Since a perfectly competitive firm can sell as much as it wishes at the market price, why can the...

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Similar questions

A market in perfect competition is in long-run equilibrium. What happens to the market if labor unions are able to increase wages for workers?
If new technology in a perfectly competitive market brings about a substantial reduction in costs of production, how will this affect the market?
What are the four basic assumptions of perfect competition? Explain in words what they imply for a perfectly competitive firm.
What two lines on a cost curve diagram intersect at the zero-profit point?
Since a perfectly competitive firm can sell as much as it wishes at the market price, why can the firm not simply increase its profits by selling an extremely high quantity?
A computer company produces affordable, easy-to-use home computer systems and has fixed costs of 250. The marginal cost of producing computers is 700 for the first computer, 250 for the second, 300 for the third, 350 for the fourth, 430 for the fifth, 450 for the sixth, and 500 for the seventh. Create a table that shows the companys output, total cost, marginal cost, average cost, variable cost, and average variable cost. At what price is the zero-profit point? At what price is the shutdown point? If the company sells the computers for 500, is it making a profit or a loss? How big is the profit or loss? Sketch a graph with AC, MC, and AVG curves to illustrate your answer and show the profit or loss. If the firm sells the computers for 300, is it making a profit or a loss? How big is the profit or loss? Sketch a graph with AC, MC, and AVG curves to illustrate your answer and show the profit or loss.
Briefly explain the reason for the shape of a marginal revenue curve for a perfectly competitive firm.