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QUESTION 8 Suppose that a firm in a competitive market has the following cost curves: PRICE 10 9 8 7 956 6.5 5 3

QUESTION 8 Suppose that a firm in a competitive market has the following cost curves: PRICE 10 9 8 7 956 6.5 5 3 2 MC 2 3 6 QUANTITY AVC Refer to Figure. At the market price of $6, this firm will earn a. zero economic profits in the short run. Ob. negative economic profits and shut down. O c. positive economic profits in the short run. Od. negative economic profits in the short run but remain in business.

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