1. Negative /positive/ zero 2. As equal number of/fewer/more 3. How short-run pr
ID: 1158865 • Letter: 1
Question
1. Negative /positive/ zero 2. As equal number of/fewer/more 3. How short-run profit or losses induce entry or exit Bikes is a company that manufactures bikes in a m ly competitive market. The following graph shows Fantastique's demand curve, marginal revenue curve (MR), marginal cost curve (MC), and average total cost curve (ATC) Place the black point (plus symbol) on the graph to indicate the short-run profit-maximizing price and quantity for this company. Then, use the green rectangle (triangle symbols) to shade the area representing the company's profit or loss. competitive 500 350 Profit or Loss MR 0 50 100 150 200 250 300 350 00450 QUANTITY (Bikes) 500 profit, which means there are en the profit-maximizing choice of output and price, the shop is making shops in the industry relative to the long-run equilibrium.Explanation / Answer
ANswer:
1)Negative ( as the average cost curve lies above the point where MC=MR).
2) fewer - as firms are making loses they will exit the industry.
3)two statements are true- both are not price takers and for both price is above marginal cost.
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