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On a graph for a representative firm in a perfectly competitive industry, depict the three cost curves AVC, ATC, and MC (assume normal U-shaped cost
On a graph for a representative firm in a perfectly competitive industry, depict the three cost curves AVC, ATC, and MC (assume normal U-shaped cost curves). Now assume the market price,P, is such that it intersects the upward sloping portion of MC above ATC. Graphically depict the short run equilibriumq(firm output) and(firm profit) under this price scenario. Be sure to provide adequate explanation.
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