(Figure: Price and Quantity XII) Which of the following statements is (are) TRUE? I. In the long run, this firm will produce 500 units of output.
II) In the short run, this firm produces 600 units of output.
III) The long-run equilibrium price is $4.
IV) At a price of $5, new firms will eventually enter the market, eliminating this firm's economic profits.

Question

(Figure: Price and Quantity XII) Which of the following statements is (are) TRUE?  I. In the long run, this firm will produce 500 units of output.
II) In the short run, this firm produces 600 units of output.
III) The long-run equilibrium price is $4.
IV) At a price of $5, new firms will eventually enter the market, eliminating this firm's economic profits.

Quizplus · Accepted Answer

The Answer of (Figure: Price and Quantity XII) Which of the following statements is (are) TRUE?  I. In the long run, this firm will produce 500 units of output.
II) In the short run, this firm produces 600 units of output.
III) The long-run equilibrium price is $4.
IV) At a price of $5, new firms will eventually enter the market, eliminating this firm's economic profits.

(Figure: Price and Quantity XII) Which of the Following Statements