Assume that all firms in this industry have identical cost functions.
When price is $15 in this industry,
A)the industry is in its long run equilibrium.
B)it is because supply has shifted from Supply B to Supply A because firms that were not making a profit left the industry.
C)new firms will be expected to enter.
D)all firms are making zero economic profits.

Question

Assume that all firms in this industry have identical cost functions. 
When price is $15 in this industry,
A)the industry is in its long run equilibrium. 
B)it is because supply has shifted from Supply B to Supply A because firms that were not making a profit left the industry. 
C)new firms will be expected to enter. 
D)all firms are making zero economic profits.

Quizplus · Accepted Answer

The Answer of Assume that all firms in this industry have identical cost functions. 
When price is $15 in this industry,
A)the industry is in its long run equilibrium. 
B)it is because supply has shifted from Supply B to Supply A because firms that were not making a profit left the industry. 
C)new firms will be expected to enter. 
D)all firms are making zero economic profits.

Assume That All Firms in This Industry Have Identical Cost