Figure 13-2
Suppose a firm operating in a competitive market has the following cost curves:
-Refer to Figure 13-2.Which of the four prices corresponds to a firm earning negative economic profits in the short run but trying to remain open?

Question

Figure 13-2
Suppose a firm operating in a competitive market has the following cost curves: 
-Refer to Figure 13-2.Which of the four prices corresponds to a firm earning negative economic profits in the short run but trying to remain open?

Quizplus · Accepted Answer

At P3, the firm is earning negative economic profits but is trying to remain open.

Figure 13-2 Suppose a Firm Operating in a Competitive Market Has the Has