Figure 9-9 -Refer to Figure 9-9.Suppose the prevailing price is P 1 and the firm is currently producing its loss-minimizing quantity.In the long-run equilibrium,

In the long-run equilibrium, if firms are making losses at price P1, some firms will exit the industry, leading to fewer firms and a decrease in total industry output.

Figure 9-9 -Refer to Figure 9-9.Suppose the prevailing price is P 1 and the firm is currently producing its loss-minimizing quantity.In the long-run equilibrium,

In the long-run equilibrium, if firms are making losses at price P1, some firms will exit the industry, leading to fewer firms and a decrease in total industry output.

Solved

Figure 9-9 -Refer to Figure 9-9.Suppose the Prevailing Price Is P₁ and Is

Question 119

Multiple Choice

Figure 9-9
-Refer to Figure 9-9.Suppose the prevailing price is P₁ and the firm is currently producing its loss-minimizing quantity.In the long-run equilibrium,

A) there will be fewer firms in the industry and total industry output decreases.
B) there will be more firms in the industry and total industry output increases.
C) there will be fewer firms in the industry but total industry output increases.
D) there will be more firms in the industry and total industry output remains constant.

Correct Answer: