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Exercise 3 From the following graph determine: 1- What Q* and P* that give abnormal profit to the firm ? 2- What Q* and P*

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Exercise 3 From the following graph determine: 1- What Q* and P* that give abnormal profit to the firm ? 2- What Q* and P* that give normal profit to the firm? 3- At which price and Quantity the firm can continue even it has loss? 4- What is the shutdown price? MC = Supply 3.5 ATC Marginal revenue & marginal cost 3.0 MR,=P,=3.0 AVC 2.5 b MR,=P,=2.5 2.0 MR.=P,=2.0 7 8 9

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