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Refer to the Above Diagram

Question 87

Multiple Choice

  Refer to the above diagram.All data are for the short run.If product price is P<sub>2</sub>,the firm will: A)  close down to avoid a loss. B)  produce Q<sub>2</sub> units and make an economic profit. C)  produce Q<sub>5</sub> units and break even. D)  produce Q<sub>2</sub> units and suffer a loss. Refer to the above diagram.All data are for the short run.If product price is P2,the firm will:


A) close down to avoid a loss.
B) produce Q2 units and make an economic profit.
C) produce Q5 units and break even.
D) produce Q2 units and suffer a loss.

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