Rikki NortonMicroeconomicsChapter 14Questions for Review (1, 2, 4, 5, 8)1. The market supply curve is usually more elastic in the long run compared to the short run because there will be more sellers in the market and more opportunities to buy in the long run. 2. The conditions under which a firm will choose to shut down temporarily are if the price of the good is less than the average variable cost. 4. In order to maximize their profits a company’s marginal revenue and marginal cost would have to exactly equal. 5. A firm’s price will equal the marginal cost in the short run because of the fixed costs of production such as land. 8. A competitive firm is a firm that is selling the same products and services as nearby
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