1. A firm produces baseball caps in a perfectly competitive market using only workers and the factory. It pays hourly wages to workers and rent for the factory. The graph to the right shows the firm's cost structure. How many caps would it produce in the short run, if the market price of a baseball cap is P1?
  1. Q1
  2. Q2
  3. Q3
  4. Q4
  5. 0

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