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The graph below shows cost curves for a firm operating in a perfectly competitive market.

Suppose that the equilibrium price is $8 (black line). This firm is earning

 

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The graph below shows cost curves for a typical firm operating in a perfectly competitive market.

Suppose that the equilibrium price is $24.33 (black line). What will happen in this market in the long run?

 

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The graph below shows cost curves for a typical firm operating in a perfectly competitive market.

Suppose that the equilibrium price is $9.56 (black line). What will happen in this market in the long run?

 

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The graph below shows cost curves for a typical firm operating in a perfectly competitive market.

Suppose that the equilibrium price is $21 (black line). What will happen in this market in the long run?

 

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The graph below shows cost curves for a typical firm operating in a perfectly competitive market.

Suppose that the equilibrium price is $11 (black line). What will happen in this market in the long run?

 

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   x    (   ) π DNE
( ) ( ] [ ) [ ] —∞ DNE
< > or All Real Numbers DNE
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