Use the figure below to answer the following questions.
Figure 12.4.3
-Refer to Figure 12.4.3, which shows the cost curves and marginal revenue curve of a firm in a perfectly competitive market. Firms are
A) making an economic profit, and some firms leave the market. Market supply decreases.
B) making an economic profit, and some firms enter the market. Market supply increases.
C) incurring an economic loss, and some firms leave the market. Market supply decreases.
D) incurring an economic loss, and some firms enter the market. Market supply increases.
E) incurring an economic loss, but since they are covering average variable cost, no one will exit the market in the long run.
Correct Answer:
Verified
Q82: Homer's Holesome Donuts has determined that its
Q85: Firms will stop exiting a market only
Q95: Suppose that the market in which bakeries
Q96: Use the figure below to answer the
Q97: Use the figure below to answer the
Q100: Use the figure below to answer the
Q103: Use the information below to answer the
Q107: An efficient allocation is achieved when
A)consumers are
Q113: The market for maple syrup is perfectly
Q114: Firms in a perfectly competitive industry are
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents