Business
Business, 22.07.2021 21:40, keasiabradley

The figure below shows the cost curves for a competitive firm. (5 marks) i. What must be the minimum price for the firm to earn economic profit? ii. The firm will incur economic losses if the price is less than Why? iii. If the market price is $15 per unit, the firm will earn profits of Why? iv. If the firm is to operate in the short run, price must exceed Why? v. If the profit-maximizing level of output is 40, price is equal to Why? vi. The firm will shut down in the short run if price falls below Why?

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