Exhibit 10-4 for the Situation Depicted in Exhibit 10-4

question 192

Multiple Choice

Exhibit 10-4 For the situation depicted in Exhibit 10-4, what will happen in the long-run?

• A)New technology will lower average total costs and increase profits for the firm.
• B)Firms will exit this market causing economic profit to increase.
• C)Product differentiation will lead to an increase in profitablility.
• D)New firms will enter the market driving economic profit to zero.
• E)Nothing, the situation will remain the same.

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Definitions:

Sulfur

A yellow, nonmetallic element that exhibits a characteristic smell and plays a vital role in the chemical industry.

Antimony

A brittle, lustrous gray metalloid used in alloys, flame retardants, and electronics, represented by the symbol Sb and atomic number 51.

Silicon

A chemical element with symbol Si and atomic number 14, known for its semiconductor properties in electronics.

Metals

Elements that are typically hard, shiny, malleable, fusible, and ductile, with good electrical and thermal conductivity.