You could conclude that

Question

Quizplus · Accepted Answer

The statement "prices are higher than the minimum point of the average total cost curve" indicates that firms in the industry are earning economic profits. In the long run, this attracts new firms to enter the industry, which in turn increases competition and may lead to lower prices and lower profits. Therefore, we can conclude that the industry is in the long run. Choice A and B are not the best choices because there is not enough information to support the idea that new firms will enter or existing firms will leave the industry.

You Could Conclude That