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Consider the following (short-run and long-run) cost structure in a perfectly competitive industry: Q 1 2 3 4 5 6 7 8 9 MC 1.4

Consider the following (short-run and long-run) cost structure in a perfectly competitive industry: Q 1 2 3 4 5 6 7 8 9 MC 1.4 1.8 2.2 2.6 3.0 3.4 3.8 4.2 4.6 AVC 1.2 1.4 1.6 1.8 2.0 2.2 2.4 2.6 2.8 ATC 6.2 3.9 3.3 3.1 3.0 3.1 3.2 3.3 3.4 In the short run, if the market price drops to $2.2: O The firm would produce at Q=2. The firm would produce at Q=1. MacBook

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