when it can sell as much as it wants at the market price, but nothing at a highe
ID: 1119496 • Letter: W
Question
when it can sell as much as it wants at the market price, but nothing at a higher price it Afirm is a e price-taker re there are weak barriers to entry, the existence of positive economic profits induces firms to: 28 h, enter d enter an an industry, which shifts the market supply curve to the left and decreases market price. an industry, which shifts the market supply curve to the right and increases market price. it an industry, which shifts the market supply curve to the right and decreases market price. industry, which shifts the market supply curve to the right and decreases market price 650 600 550 500 450 400 D MC 300 250 AVC 150 100 50 1 2 3 4 5 578 9 10 11 12 29. Quantity efer to the graph above of a profit-maximizing firm. Which area represents economic profits? DAFM CBFM The entire area above the demand curvoe DABCExplanation / Answer
Q27
Answer
Option c
price-taker
the price taker, it increases price then the firm will not have any consumer.
Q28
Answer
option d
the positive profit attracts new firms and it increases supply which shifts the supply curve to the right and decreases price.
Q29
the firm produces at MC=P
where
P=350
ATC=250
Q=8
profit=(P-ATC)*Q=(350-250)*8=$800
the area is DABC
option d
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