Refer to the Information Provided in Figure 9

question 78

Multiple Choice

Refer to the information provided in Figure 9.5 below to answer the question that follows. Figure 9.5
-Refer to Figure 9.5. From the diagram, existing firms in this industry make ________ economic profits, and as long as this continues, ________.

• A) negative; new firms will not enter it and existing firms will leave it
• B) zero; new firms will not enter it and existing firms will not leave it either
• C) positive; new firms will enter the industry and existing firms will not leave it
• D) positive; the industry supply curve will shift to the left