Multiple Choice

-The above figure shows the cost curves for a perfectly competitive firm. If all firms in the market have the same cost curves and the price equals $16 per unit,
A) over time, firms will leave this market.
B) over time, the price will fall as new firms enter the market.
C) the market is in its long- run equilibrium.
D) the firm is making zero economic profit.
Correct Answer:
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