F1 Revenue and cost (dollars per unit)50MCATC AVC403020101020304050Output (units per day)The above figure shows a perfectly competitive firm. If the market price is more than $20 per unit, the firmO A. will stay open to produce and will make an economic profit.O B. will stay open to produce and will incur an economic loss.O C. might shut down but more information is needed about the fixed cost.O D. will stay open to produce and will make zero economic profit.O E. will definitely shut down to minimize its losses.MacBook Proesc888@#3$&12346.QWERTYSFG H J* C0

The firms and businesses tend to operate with the motive of earning maximum amount of profits. The…

Revenue and cost (dollars per unit) 50 MC ATC AVC 40 30 20 10 10 20 30 40 50 Output (units per day) The above figure shows a perfectly competitive firm. If the market price is more than $20 per unit, the firm A. will stay open to produce and will make an economic profit. B. will stay open to produce and will incur an economic loss. C. might shut down but more information is needed about the fixed cost. O D. will stay open to produce and will make zero economic profit. O E. will definitely shut down to minimize its losses.

Revenue and cost (dollars per unit) 50 MC ATC AVC 40 30 20 10 10 20 30 40 50 Output (units per day) The above figure shows a perfectly competitive firm. If the market price is more than $20 per unit, the firm A. will stay open to produce and will make an economic profit. B. will stay open to produce and will incur an economic loss. C. might shut down but more information is needed about the fixed cost. O D. will stay open to produce and will make zero economic profit. O E. will definitely shut down to minimize its losses.

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter8: Perefect Competition

Section: Chapter Questions

Problem 5SQP

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