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The table shows cost data of a purely competitive firm. Use this data to determine if each statement is true or false. Assume that any losses that the firm may earn are temporary Total Fixed cost Total Variable Cost Output $10,000 100 18,000 10,000 200 10,000 30,000 300 10,000 46,000 400 10,000 66,000 500 10,000 92,000 1. If the market price is $200, then the breakeven point is at 200 units of output. False 2. If the market price is $160, then the firm will shutdown 3. If the market price is $182, then the firmwill produce and earn a negative economic profit. 4. If the price is $200, then the firm will produce and earn a positive economic profit.

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