The diagram below shows the average revenue and marginal revenue (AR and MR) curves, and the average cost and marginal cost (AC and MC) curves, for the only firm in an industry.
If the market is highly contestable, in the long run, the firm is most likely to set its price at
1 )
0P$_1$
0P$_2$
3 )
0P$_3$
4 )
0P$_4$
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