Use the Following to Answer Question

question 261

Multiple Choice

Use the following to answer question:
-(Table: Cherry Farm) Use Table: Cherry Farm.Suppose there are 100 farms in this industry with identical cost curves,as shown in the table.If the price is $4 per pound:

• A)firms will enter the industry.
• B)firms will exit the industry.
• C)the industry is in long-run equilibrium.
• D)the industry has maximized average total cost.

---

Definitions:

Standard Of Living

A level of material comfort in terms of goods and services available to someone or some group.

Market Failure

Market failure occurs when the allocation of goods and services by a free market is not efficient, often leading to a net social welfare loss.

Allocate Resources

The process of distributing available resources among various competing needs and desires to achieve desired outcomes.

Efficiently

Achieving maximum productivity with minimum wasted effort or expense.