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Figure 12-7 Figure 12-7 Illustrates the Cost Curves of a Perfectly Competitive

Question 134

Multiple Choice

Figure 12-7
Figure 12-7 Figure 12-7 illustrates the cost curves of a perfectly competitive firm. -Refer to Figure 12-7.If the market price is P₁ A) The firm will experience a loss and raise its price to P₂. The firm will then break even. B) The firm will break even by producing a quantity of Q₂. C) The firm will experience a loss since price is less than ATC. D) The firm may make a profit if it can increase the demand for its product.
Figure 12-7 illustrates the cost curves of a perfectly competitive firm.
-Refer to Figure 12-7.If the market price is P₁


A) The firm will experience a loss and raise its price to P₂. The firm will then break even.
B) The firm will break even by producing a quantity of Q₂.
C) The firm will experience a loss since price is less than ATC.
D) The firm may make a profit if it can increase the demand for its product.

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