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tweb28 tweb28
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A year ago

Consider the following short-run cost curves for a profit-maximizing firm in a perfectly competitive industry.

Short description: A graph plots quantity against price in dollars. Long description: The horizontal axis representing quantity ranges from 0 to 400, in increments of 100. The vertical axis representing price in dollars ranges from 0 to 6, in increments of 1. The graph plots three curves. The curve, MC passes through the points, (200, 1.5), (300, 3), and (400, 6). The curve, SRATC passes through the points, (130, 4), (300, 3), and (400, 4). The curve, SRAVC passes through the points, (70, 3), (200, 1.5), (300, 2.3), and (400, 3). MC and SRAVC intersect at (200, 1.5). MC and SRATC intersect at (300, 3). Note: all values are approximate.

FIGURE 9-2

Refer to Figure 9-2. If the market price is $2, the firm will



▸ produce zero output and suffer a loss equal to its fixed cost.

▸ produce 300 units and make a loss equal to total variable cost.

▸ produce zero output and make zero profit.

▸ continue operating in the short run and suffer a loss that is less than its fixed cost.

▸ produce 200 units and make a loss equal to its total fixed cost.
Textbook 
Microeconomics

Microeconomics


Edition: 17th
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durandaldurandal
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A year ago
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tweb28 Author
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A year ago
Thanks
africa143
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This site is awesome
annakc
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2 hours ago
Smart ... Thanks!
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