Which demand curve(s) indicates the firm incurs a loss

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Reference no: EM131091404

Consider Exhibit 7.11, which shows the graph of a perfectly competitive firm in the short run.

a. If the firm's demand curve is MR3, does the firm earn an economic profit or loss?

b. Which demand curve(s) indicates the firm incurs a loss?

c. Which demand curve(s) indicates the firm would shut down?

d. Identify the firm's short-run supply curve.

Reference no: EM131091404

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