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When the price faced by a competitive firm was $5, the firm produced nothing in theshort run. However, when the price rose to $10, the
When the price faced by a competitive firm was $5, the firm produced nothing in theshort
run. However, when the price rose to $10, the firm produced 100 tons of output. Fromthis
we can infer that:
a.the firm's marginal cost curve must be flat.
b.the firm's marginal costs of production never fall below$5.
c.the firm's total cost of producing 100 tons is less than$1000.
d.the"minimumprice" for this firm lies between $5 and $10.
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