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 make positive profits by producing more than 35 units.
B) can make positive profits by producing where MC = MR.
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:
Verified
Q89: Q90: Given the exit rule,where does a firm's Q91: In the short run,a firm that finds Q92: When the market price has fallen below Q93: In the short run,when a firm stops Q95: If the market price ever drops below Q96: In the short run,the fixed costs of Q97: A firm realizes that the market price Q98: A firm realizes that the market price Q99: In the short run,the relevant costs for
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