Refer to the graph shown, which depicts a perfectly competitive firm. If the price of the product is $3:
A) new firms will enter the industry.
B) the firm will just cover its opportunity cost of production.
C) the industry will be in long-run equilibrium.
D) the firm may continue to operate in the short run but will exit the industry in the long run.

Question

Refer to the graph shown, which depicts a perfectly competitive firm. If the price of the product is $3: 
A) new firms will enter the industry. 
B) the firm will just cover its opportunity cost of production. 
C) the industry will be in long-run equilibrium. 
D) the firm may continue to operate in the short run but will exit the industry in the long run.

Quizplus · Accepted Answer

The Answer of Refer to the graph shown, which depicts a perfectly competitive firm. If the price of the product is $3: 
A) new firms will enter the industry. 
B) the firm will just cover its opportunity cost of production. 
C) the industry will be in long-run equilibrium. 
D) the firm may continue to operate in the short run but will exit the industry in the long run.

Refer to the Graph Shown, Which Depicts a Perfectly Competitive