Respuesta :
If at the point where MC and MR curves intersect, ATC = $18 and AVC = $15, then Annie willa have losses equal to fixed costs and exit in the short run
Option A and B are correct
Calculating the problem:
Given :
ATC = $18 and AVC = $15
Then the fixed costs will be equal to = 18 - 15
= $3 per unit.
price level = $15 and ATC = $18
The loss per unit = 18 - 15 = $3 is the loss per unit.
As Annie makes losses, she will exit the industry in the short run.
In economics, especially general equilibrium theory, perfect markets, also called atomistic markets, are defined by several idealized conditions collectively called perfect competition.
What is Perfect Competition in Economics?
Perfect competition occurs when there are many sellers, it is easy to enter and exit the firm, the products are identical for each seller, and the sellers are price takers.
Why is perfect competition important?
To be clear, perfect competition is common and doesn't matter (in practice, there are few or no such markets). Its real meaning lies in the observation that deviations from perfect competition are the foundation of firms' high profits and competitive advantage.
Learn more about perfect competition:
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