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Cost, $ MC 30 AC 20 18 AVC 10 50 80 9 for the The graph above shows the cost curves for a competitive firm. The price must ex
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Answer #1

Answer is 10$

In perfect competitive firm, the price must exceed the Average Variable cost for the firm to operate is short run. Overall the firm is in loss even if price is at AVC but it can pay at least its variable cost in the short run, thus the firm can continue to operate in short run, minimizing losses. In long run the firm will exit due to continue losses.

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