study guide quiz2

study guide quiz2 - EACH) 5. (4 pts) Below, draw a graph of...

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Econ 120 Quiz #2 Study Guide Do you know what these are? 1. The Marginal-Average Rule 2. “Too Many Cooks Spoil the Broth” 3. Zero Economic Profit in the long-run for a firm in a perfectly competitive market
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Complete each graph and answer the questions regarding the graph/figure. FIGURE 1 $ 10 MC 8 6 ATC 4 2 0 0 5 10 15 20 Quantity 4. (3 pts) If this firm was in a perfectly competitive market and was facing a price of $8, show the quantity of the good produced and the level of profit for the firm. (LABEL
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Unformatted text preview: EACH) 5. (4 pts) Below, draw a graph of this company given that it was facing a price of $4 but and decided it was going to stay in business (NOT SHUT DOWN) in the short run. Label all lines. 6. (4 pts) Suppose the company is facing figure 1 in the short run. What would the firm look like in the long run? Show the graph below and label all lines....
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study guide quiz2 - EACH) 5. (4 pts) Below, draw a graph of...

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