Figure 8-21 Consider Figure 8-21.If the market price is P 3 , which of the following best describes the long-run implications for the industry?

The Answer of Figure 8-21 Consider Figure 8-21.If the market price is P 3 , which of the following best describes the long-run implications for the industry?

Figure 8-21 Consider Figure 8-21.If the market price is P 3 , which of the following best describes the long-run implications for the industry?

The Answer of Figure 8-21 Consider Figure 8-21.If the market price is P 3 , which of the following best describes the long-run implications for the industry?

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Figure 8-21 Consider Figure 8-21

Question 25

Multiple Choice

Figure 8-21 Consider Figure 8-21.If the market price is P₃, which of the following best describes the long-run implications for the industry?

A) Profit will attract new resources to the industry and drive the market price down.
B) Profit will attract new resources to the industry and drive prices up.
C) The lack of profit will lead to the maintenance of the status quo.
D) Losses will drive resources from the industry and drive market price down.
E) Losses will drive resources from the industry and drive market prices up.

Correct Answer: