Figure 13-11

-Refer to Figure 13-11.The diagram depicts a firm
A)in a constant-cost industry.
B)in an increasing-cost industry.
C)in long-run equilibrium.
D)that is incurring short-run losses.

Question

Figure 13-11
 
-Refer to Figure 13-11.The diagram depicts a firm
A)in a constant-cost industry. 
B)in an increasing-cost industry. 
C)in long-run equilibrium. 
D)that is incurring short-run losses.

Quizplus · Accepted Answer

The diagram depicts a firm in long-run equilibrium because it is earning zero economic profits, producing at the efficient scale, and is charging a price equal to its average total cost. There is no indication that it is incurring short-run losses or operating in either a constant-cost or increasing-cost industry.

Figure 13-11 -Refer to Figure 13-11.The Diagram Depicts a Firm