If a firm in a perfectly competitive market faces the cost curves in the graph shown and observes a market price of $13, the firm: 
A) can earn positive profits by producing more than 35 units.
B) can earn positive profits by producing where marginal revenue equals marginal cost.
C) cannot make positive profits and should shut down in the short run.
D) should continue to operate in the short run, but plan to exit in the long run.
Correct Answer:
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Q106: <p><b><b><span style="font-size:20pt;"><span style="color:#FF0000;"> Q107: The graph shown displays the cost curves Q108: The graph shown displays the cost curves Q109: The key difference between supply in the Q110: The graph shown displays the cost curves Q112: In the long run, firms will enter Q113: If a firm in a perfectly competitive Q114: The graph shown displays the cost curves Q115: In the short run in a perfectly Q116: In the short run in a perfectly
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