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The Following Diagram Shows a Perfectly Competitive Industry and Firm

Question 7

Multiple Choice

The following diagram shows a perfectly competitive industry and firm. Initial supernormal profits have attracted new firms into the industry.
The following diagram shows a perfectly competitive industry and firm. Initial supernormal profits have attracted new firms into the industry. Q<sub>L</sub><sub> </sub>represents long- run equilibrium output of the firm because A) LRAC = AR<sub>L</sub><sub> </sub> B) S<sub>e</sub><sub> </sub>> S<sub>1</sub><sub> </sub> C) P<sub>1</sub><sub> </sub>> P<sub>L</sub><sub> </sub> D) D<sub>1 </sub>> D<sub>L</sub> QL represents long- run equilibrium output of the firm because


A) LRAC = ARL
B) Se > S1
C) P1 > PL
D) D1 > DL

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