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Refer to the Graphs Shown, Which Depict a Perfectly Competitive

Question 136

Multiple Choice

Refer to the graphs shown, which depict a perfectly competitive market and firm. If market demand increases from D0 to D1, the firm will: Refer to the graphs shown, which depict a perfectly competitive market and firm. If market demand increases from D<sub>0</sub> to D<sub>1</sub>, the firm will:   A)  lower the price it charges. B)  earn negative economic profit in the short run. C)  earn positive economic profit in the short run. D)  earn positive economic profit in the long run.


A) lower the price it charges.
B) earn negative economic profit in the short run.
C) earn positive economic profit in the short run.
D) earn positive economic profit in the long run.

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