FIGURE 9-1
-Refer to Figure 9-1.The diagram shows cost curves for a perfectly competitive firm.If the market price is P₁,the profit-maximizing firm in the short run should

Question

FIGURE 9-1 -Refer to Figure 9-1.The diagram shows cost curves for a perfectly competitive firm.If the market price is P₁,the profit-maximizing firm in the short run should

Quizplus · Accepted Answer

The profit-maximizing firm in the short run will produce output D or shut down as it doesn't really matter which. At output D, the firm is making zero economic profit, and it is indifferent between producing and shutting down.

FIGURE 9-1 -Refer to Figure 9-1.The Diagram Shows Cost Curves for a for a Perfectly