If a firm in a perfectly competitive market faces the cost curves in the graph shown, which of the following is true? If the price is higher than $15 and if the firm produces at the profit-maximizing level of output, it will earn positive profits.The firm should always produce at least 43 units in order to maximize profits.The firm will shut down if the market price is below $15 but above $11.

Question

If a firm in a perfectly competitive market faces the cost curves in the graph shown, which of the following is true?  If the price is higher than $15 and if the firm produces at the profit-maximizing level of output, it will earn positive profits.The firm should always produce at least 43 units in order to maximize profits.The firm will shut down if the market price is below $15 but above $11.

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The Answer of If a firm in a perfectly competitive market faces the cost curves in the graph shown, which of the following is true?  If the price is higher than $15 and if the firm produces at the profit-maximizing level of output, it will earn positive profits.The firm should always produce at least 43 units in order to maximize profits.The firm will shut down if the market price is below $15 but above $11.

If a Firm in a Perfectly Competitive Market Faces the Cost