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The graph below shows different scenarios of a firm in pure competition. Dollars per unit MC ATC AVC PA Р. Pe=MR4=ARA =
Posted: Thu May 19, 2022 7:22 am
by answerhappygod
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The graph below shows different scenarios of a firm in pure competition. Dollars per unit MC ATC AVC PA Р. Pe=MR4=ARA = DA Pg=MR = AR3 = D. P2= MR2 = ARED2 -Py = MR = AR, = D. P2 = P1 0 Q 0,0,0,05Q8Q- ,, Quantity per timo a. At price P1, how much will the firm produce and why? (4 marks) b. At price P2, how much will the firm produce? What will happen in the long run if the price stays the same? (4 marks) c. At price P3, how much will the firm produce? What will happen in the long run if the price stays the same? (4 marks) d. At price P4, how much will the firm produce? What will happen in the long run if the price stays the same? (4 marks)