Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Firm XYZ sells widgets in a competitive market. Suppose the price of widgets is $300, and the marginal cost is expressed by MC = 10

image text in transcribed
image text in transcribed
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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Marketing

Authors: Philip R Cateora, John Graham, Mary Gilly

18th Edition

1260547876, 9781260547870

More Books

Students also viewed these Economics questions

Question

The fear of making a fool of oneself

Answered: 1 week ago

Question

Annoyance about a statement that has been made by somebody

Answered: 1 week ago