Economics 9708 · AS & A Level · 7.5

7.5 — practice question

The diagram illustrates the marginal cost (MC), average variable cost (AVC) and average total cost (ATC) curves for a profit maximising firm in a perfectly competitive market. Which market price would imply that the firm would continue operating in the short run but would not survive in the long run?

  • AP1
  • BP2
  • CP3
  • DP4

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