Question 1
Refer to the information provided in Figure 9.3 below to answer the question(s) that follow.
Refer to Figure 9.3. This firm's ________ is the firm's marginal cost curve above point
B.
◦ average fixed cost curve
◦ demand curve
◦ short-run supply curve
◦ marginal revenue curve
Question 2
Refer to the information provided in Figure 9.3 below to answer the question(s) that follow.
Refer to Figure 9.3. This firm will ________ if price is between $7 and $13.
◦ earn an economic profit
◦ shut down in the short run, but operate in the long run
◦ continue to operate in the short run, but incur an economic loss
◦ shut down
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