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In Figure 23

Question 6

Multiple Choice

In Figure 23.3,diagram a presents the cost curves that are relevant to a firm's production decision,and diagram b shows the market demand and supply curves for the market.Use both diagrams to answer the following question: In Figure 23.3,at a price of p1 in the long run A) Firms will enter the market. B) Economic profits equal zero. C) Firms will exit the market. D) P = ATC. In Figure 23.3,diagram "a" presents the cost curves that are relevant to a firm's production decision,and diagram "b" shows the market demand and supply curves for the market.Use both diagrams to answer the following question: In Figure 23.3,at a price of p1 in the long run


A) Firms will enter the market.
B) Economic profits equal zero.
C) Firms will exit the market.
D) P = ATC.

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