Refer to the information provided in Figure 9.2 below to answer the question(s) that follow. Figure 9.2 -Refer to Figure 9.2. If demand for wheat is D₁, then in the long run A) the firm will increase its price and output. B) the firm will exit the industry. C) new firms will enter the industry, and the current firms will expand production. D) firms will increase their output so that their average fixed cost per unit falls.

Question

Quizplus · Accepted Answer

In the long run, if demand is low (D1), firms may not cover their costs, leading to losses. Consequently, firms will exit the industry to avoid continued losses.

Refer to the Information Provided in Figure 9