b. If the market is price falls to $7, find the quantity a profit maximizing firm would choose to produce. Calculate profits or losses. Should the firm shut down immediately? Explain why or why not. c. If the market price starts out at $17 what would you expect to happen in the long run in this industry to the price and profits? Explain why.
b. If the market is price falls to $7, find the quantity a profit maximizing firm would choose to produce. Calculate profits or losses. Should the firm shut down immediately? Explain why or why not. c. If the market price starts out at $17 what would you expect to happen in the long run in this industry to the price and profits? Explain why.
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter13: Firms In Competitive Markets
Section: Chapter Questions
Problem 7PA
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