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need answers to these multiple choice questions for econ study guide
MC ATC D. P3 QUANTITY 14. If the firm is in short-run equilibrium at a price of P5, a perfectly competitive firm will maximiz
24. Which of the following is true for a firm operating under perfect competition in th e long run? The firm will engage in n
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Answer #1

14. Since the price = P5

Setting P = MC,

Quantity = Q5

option e is the correct answer

15

Profit = (P-ATC)*Q

Price P1 to P4 are below or equal to ATC, only P5 is above ATC

So at price level, P5 firm will make a normal profit

option e is the correct answer

24

in long run a firm operating under perfect competition makes zero economic profit

option d is the correct answer

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