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1) Questions 5 through 7 refer to the following graphical representation of a short-run situation faced by a perfectly competitive firm.
Is this a good market for this firm to be in?Yes the firm should be here in the short run but in the long run it should leave.Yes the firm should be here in the short run and it should also stay in the long run.No; the firm should exit immediately.
2) Which of the following describes the firm's situation in the short run?The firm is breaking evenThere is a short run lossThere is a short run profitThe short run profit/loss situation cannot be determined from this graph
3) What do you expect to happen in the long run?New firms will enter; short-run profits will disappearNew firms will enter; short-run losses will disappearSome existing firms will leave; short-run profits will disappearSome existing firms will leave; short-run losses will disappear
Normal 0 false false false EN-US X-NONE X-NONE Many countries experiencing..
How is MP in the second graph related to TP in the top graph? Explain briefly and show the connection on the graph and In what units is MP measured
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