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Figure 14-3 Suppose a Firm Operating in a Competitive Market Has the Has

Question 117

Multiple Choice

Figure 14-3
Suppose a firm operating in a competitive market has the following cost curves: Figure 14-3 Suppose a firm operating in a competitive market has the following cost curves: -Refer to Figure 14-3. In the short run, if the market price is P<sub>4</sub>, individual firms in a competitive industry will earn A) positive profits. B) zero profits. C) losses but will remain in business. D) losses and will shut down.
-Refer to Figure 14-3. In the short run, if the market price is P4, individual firms in a competitive industry will earn


A) positive profits.
B) zero profits.
C) losses but will remain in business.
D) losses and will shut down.

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