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The graph below depicts the cost structure for a price taker firm in a competitive market. Figure 9-13 Price ATC MC AVC Q Q 2

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The graph below depicts the cost structure for a price taker firm in a competitive market. Figure 9-13 Price ATC MC AVC Q Q 2 Q3 24 Quantity Refer to the price-taker firm in Figure 9-13 9-13.png . At a price of P 4, which of the following are true? this firm is making an economic loss and will leave the market in the long-run, but stay open in the short-run This firm is making an economic loss and will shut-down immediately This firm is making a positive economic profit and firms will enter the market in the long-run, driving profits down to zero. This firm is making a positive economic profit, which will cause firms to exit the market in the long- run

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