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Exhibit 8-19 a Single Firm in a Perfectly Competitive Market

Question 24

Multiple Choice

Exhibit 8-19 A Single Firm in a Perfectly Competitive Market Exhibit 8-19 A Single Firm in a Perfectly Competitive Market Consider Exhibit 8-19.When the market price is P<sub>1</sub>, which of the following most acurately reflects the firms short-run situation? A) The firm will choose to produce quantity Q<sub>5</sub> and earn exactly 0 profit B) The firm will choose to produce quantity Q<sub>5</sub> and earn a profit C) The firm will choose to produce quantity Q<sub>5</sub> and suffer a loss D) The firm will choose to produce quantity Q<sub>1</sub> and earn a profit > 0 E) The firm will choose to produce quantity Q<sub>1</sub> and earn exactly 0 profit Consider Exhibit 8-19.When the market price is P1, which of the following most acurately reflects the firms short-run situation?


A) The firm will choose to produce quantity Q5 and earn exactly 0 profit
B) The firm will choose to produce quantity Q5 and earn a profit
C) The firm will choose to produce quantity Q5 and suffer a loss
D) The firm will choose to produce quantity Q1 and earn a profit > 0
E) The firm will choose to produce quantity Q1 and earn exactly 0 profit

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