Graph 14-8

Graph 14-8
-Refer to Graph 14-8.If the figure in panel (a) reflects the long-run equilibrium of a profit-maximising firm in a competitive market, the figure in panel (b) most likely reflects:

A) perfectly inelastic long-run market supply
B) the product of individual firm supply curves for all firms in the market
C) the idea that free entry and exit of firms in the market lead to only one market price in the long run
D) zero profits cannot be sustained in the long run

Correct Answer:

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