Figure 12-7 Illustrates the Cost Curves of a Perfectly Competitive

question 220

Multiple Choice

Figure 12-7 illustrates the cost curves of a perfectly competitive firm.
-Refer to Figure 12-7.If the market price is P2 the firm

• A)will break even and produce a quantity of Q2.
• B)will make a profit and produce a quantity of Q2.
• C)will make a profit and produce a quantity of Q1.
• D)will make a profit and produce a quantity of Q3.

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