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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 $7 (black line). What will this firm do in the short 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 $10 (black line). What will this firm do in the short run?

 

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

Suppose that the equilibrium price is $18 (black line). What will this firm do in the short 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 $17 (black line). What will this firm do in the short run?

 

Hint