Economics 9708 · AS & A Level · 7.6

7.6 — practice question

An imperfectly competitive firm was earning supernormal profits. In the next year, it earned normal profit, while output stayed unchanged. How might this be represented on a diagram for an imperfectly competitive firm?

  • Aby a movement to the left of the average revenue curve
  • Bby a movement to the right of the marginal revenue curve
  • Cby a shift to the right of the marginal cost curve
  • Dby an upward shift in the average cost curve

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