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Firm XYZ sells widgets in a competitive market. Suppose the price of widgets is $300, and the marginal cost is expressed by MC = 10
Firm XYZ sells widgets in a competitive market. Suppose the price of widgets is $300, and the marginal cost is expressed by MC = 10 + 2Q. Suppose the minimum point on firm XYZ's average total cost curve occurs where Q = 140. Which of the following statements is true? Ci XYZis profit is positive in the short run but will be zero in the long run. C} XYZ's profit is negative in the short run but the firm will not exit the market in the long run. 0 XYZ's profit is positive in the short run and will continue to stewr positive in the long run. 0 XYZ's profit is negative in the short run and W2 will exit the market in the long run
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