-Refer to Figure 9.6.At a market price of $15,this perfectly competitive,profit-maximizing firm should

Question

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At a market price of $15, a perfectly competitive, profit-maximizing firm should operate in the short run if the price covers its variable costs, which indicates it can cover some of its fixed costs and potentially make a profit. Shutting down is only optimal if the price is below the average variable cost. The question does not provide enough information to determine if the firm realizes a normal profit or its long-run decisions.