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If the Short-Run Supply Curve and the Demand Curve Intersect

Question 17

Multiple Choice

If the short-run supply curve and the demand curve intersect below the long-run supply curve,firms will experience ________ economic profits,meaning the price is ________ the minimum point on the average total cost curve.


A) positive; above
B) positive; below
C) negative; above
D) negative; below
E) zero; above

Correct Answer:

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