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

question 289

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 negative economic profit but remain in business in the short run if the market price is

• A)above $6.30 but less than $8.
• B)above $6.30.
• C)less than $6.30 but more than $4.50.
• D)less than $4.50.