Micro Unit 3.6-Model Minute Shutting Down Interactive - Michael Burbine | Library

Go to the linked Wolfram Model Interactive. Use the model to answer the following questions.

1

Assume that the firm starts at Zero Economic Profit (MR=D=AR=P) is at the minimum of ATC.

1

When Supply and/or Demand shift in the market, this causes a change in __________  to the firm, because the firm is a __________  taker. If the __________ drops entirely below________  , the firm will make an economic _________ . If the price drops even further, below ________ the firm might be forced to ______________________  .

	Can Cause + Economic Profit	Can Cause - Economic Profit	Can Cause the Firm to Shut-Down in the Short-Run
Increasing Market Supply
Decreasing Market Supply
Increasing Market Demand
Decreasing Market Demand

	Can Cause + Economic Profit	Can Cause - Economic Profit	Can Cause the Firm to Shut-Down in the Short-Run
Increasing Market Supply
Decreasing Market Supply
Increasing Market Demand
Decreasing Market Demand