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Use the Following to Answer Questions

Question 303

Multiple Choice

Use the following to answer questions:
Figure: The Profit-Maximizing Firm in the Short Run Use the following to answer questions: Figure: The Profit-Maximizing Firm in the Short Run -(Figure: The Profit-Maximizing Firm in the Short Run) Look at the figure The Profit-Maximizing Firm in the Short Run. If the market price is less than P<sub>2</sub>, the firm will _____ in the short run. A) produce q<sub>1</sub> and break even B) produce q<sub>1</sub> and incur a loss C) shut down D) produce q<sub>3</sub> and make a profit
-(Figure: The Profit-Maximizing Firm in the Short Run) Look at the figure The Profit-Maximizing Firm in the Short Run. If the market price is less than P2, the firm will _____ in the short run.


A) produce q1 and break even
B) produce q1 and incur a loss
C) shut down
D) produce q3 and make a profit

Correct Answer:

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