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(Figure: Interpreting Cost and Price Curves) Based on the Graph

Question 103

Multiple Choice

(Figure: Interpreting Cost and Price Curves) Based on the graph, we can see that in this perfectly competitive industry, there
(Figure: Interpreting Cost and Price Curves)  Based on the graph, we can see that in this perfectly competitive industry, there   A)  are no economic profits because the market is saturated. B)  are too many firms in the market, so firms are operating at a loss. C)  is an incentive for more firms to enter the market. D)  is no incentive for more firms to enter the market because existing firms are earning normal profit.


A) are no economic profits because the market is saturated.
B) are too many firms in the market, so firms are operating at a loss.
C) is an incentive for more firms to enter the market.
D) is no incentive for more firms to enter the market because existing firms are earning normal profit.

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