The Diagram Below Shows the Short- Run Cost Curves for 3

question 52

Multiple Choice

The diagram below shows the short- run cost curves for 3 perfectly competitive firms in the same industry.
FIGURE 9- 6
-Refer to Figure 9- 6.Given that Firms A,B and C are in the same industry,is this industry in long- run equilibrium?

• A)Yes,because all 3 firms are producing at their minimum average total cost.
• B)No,because Firm A is not producing at a profit- maximizing level of output.
• C)Yes,because each of the 3 firms is operating at its minimum efficient scale.
• D)No,because if the industry were in equilibrium,all 3 firms would be earning zero economic profits.
• E)Yes,because P = MC = MR for each of the 3 firms.

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Definitions:

Greater Number

Greater Number signifies a quantity larger than another quantity being compared.

Forearm

The region of the upper limb between the elbow and the wrist, encompassing the radius and ulna bones.

Medial Side

The medial side refers to a position closer to the midline of the body or a structure within the body.

Thigh Muscles

A group of muscles located in the upper leg, responsible for movements of the hip and knee joints.