The figure depicts a firm in a price-taker market. Use this figure to answer the following question(s).
Figure 9-18

Refer to Figure 9-18. Given the current market conditions, in the long run,
A) new firms will enter the industry and market price will fall.
B) firms will exit the industry and market price will rise.
C) firms will neither enter nor exit because the market is in long-run equilibrium.
D) firms will maintain their current level of economic profit.

Question

The figure depicts a firm in a price-taker market. Use this figure to answer the following question(s).
Figure 9-18

Refer to Figure 9-18. Given the current market conditions, in the long run,
A) new firms will enter the industry and market price will fall. 
B) firms will exit the industry and market price will rise. 
C) firms will neither enter nor exit because the market is in long-run equilibrium. 
D) firms will maintain their current level of economic profit.

Quizplus · Accepted Answer

The Answer of The figure depicts a firm in a price-taker market. Use this figure to answer the following question(s).
Figure 9-18

Refer to Figure 9-18. Given the current market conditions, in the long run,
A) new firms will enter the industry and market price will fall. 
B) firms will exit the industry and market price will rise. 
C) firms will neither enter nor exit because the market is in long-run equilibrium. 
D) firms will maintain their current level of economic profit.

The Figure Depicts a Firm in a Price-Taker Market