The figure represents the short-run production decision of a perfectly competitive firm. Firms are making an economic

Question

Accepted Answer

loss, and some firms will leave the industry, causing the industry supply curve to decrease.

Answer

loss, but since they are covering average variable cost, no one will exit the industry in the long run.

Answer

profit, and some firms will leave the industry, causing the industry supply curve to decrease.

Answer

profit, and some firms will enter the industry, causing the industry supply curve to increase.

Answer

loss, and some firms will enter the industry, causing the industry supply curve to increase.

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