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asaini1254 asaini1254
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A year ago

Consider the following cost curves for Firm X, a perfectly competitive firm.

Short description: A graph plots quantity against dollars per unit. Long description: The horizontal axis represents quantity. The vertical axis represents dollars per unit. The graph plots five curves. A large U-shaped curve represents LRAC. It encloses two small U-shaped curves. The first curve on the left represents SRATC subscript 1. The second curve at the center represents SRATC subscript 2. Two concave up increasing curves represent MC subscript 1 and MC subscript 2. MC subscript 1 and SRATC subscript 1 intersect at (Q subscript 1, P subscript 1). LRAC and MC subscript 1 intersect at a point. LRAC, MC subscript 2, and SRATC subscript 2 intersect at (Q subscript 2, P subscript 2).

FIGURE 9-8

Refer to Figure 9-8. Firm X is producing output level Q2 where price = P2. Which of the following statements about this firm are correct?
1. P = MC = SRATC = LRAC.
2. There are economic profits to attract new entrants.
3. Firm X is producing at its minimum efficient scale.



▸ Statement 1

▸ Statement 2

▸ Statement 3

▸ Statements 1 and 3

▸ Statements 2 and 3
Textbook 
Microeconomics

Microeconomics


Edition: 17th
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dangoondangoon
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A year ago
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asaini1254 Author
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A year ago
Thanks for your help!!
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Brilliant ツ
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