Figure 14-4 Suppose a Firm Operating in a Competitive Market Has the Has

question 490

Multiple Choice

Figure 14-4
Suppose a firm operating in a competitive market has the following cost curves:
-Refer to Figure 14-4. At which price range will the firm continue to operate in the short run but earn negative profits?

• A)any price higher than P4
• B)any price higher than P3 but less than P4
• C)any price higher than P2 but less than P3
• D)any price lower than P1

---

Definitions:

X-Intercepts

The points where a graph intersects the x-axis, representing the values of x when the function or equation equals zero.

Graph

An illustration showing the web of interactions or relationships between multiple elements using unique markers such as dots, lines, and bars.

Perpendicular

Lines or planes that intersect at a right angle (90 degrees).

Parallel

Lines or planes that are the same distance apart over their entire length and never meet.