Exhibit 7-8

-According to Exhibit 7-8,given the short-run equilibrium of this firm,we would expect:

Question

Exhibit 7-8
 
-According to Exhibit 7-8,given the short-run equilibrium of this firm,we would expect:

Quizplus · Accepted Answer

There is not enough information in Exhibit 7-8 to determine if the firm is operating at a quantity where it should increase output, decline output, or if the market supply curve will shift. However, we can see that the firm is producing at a point where price equals average variable cost, indicating that the firm is covering its variable costs in the short run. Therefore, we would expect the firm to at least continue producing at this level in order to cover its fixed costs and avoid losses.

Exhibit 7-8 -According to Exhibit 7-8,given the Short-Run Equilibrium of This Firm,we