Figure 14-1 Suppose That a Firm in a Competitive Market Has the Has

question 107

Multiple Choice

Figure 14-1
Suppose that a firm in a competitive market has the following cost curves:
-Refer to Figure 14-1. The firm will earn a positive economic profit in the short run if the market price is

• A)above $6.30.
• B)less than $6.30 but more than $4.50.
• C)less than $4.50.
• D)exactly $6.30.

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