-The Above Figure Shows the Cost Curves for a Perfectly

question 49

Multiple Choice

-The above figure shows the cost curves for a perfectly competitive firm. If all firms in the market have the same cost curves and the price equals $16 per unit,

• A) over time, firms will leave this market.
• B) over time, the price will fall as new firms enter the market.
• C) the market is in its long- run equilibrium.
• D) the firm is making zero economic profit.

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Definitions:

Demotion

The act of reducing an employee's rank or position, usually as a disciplinary measure or due to organizational restructuring.

Wage/Salary Survey

A study that tells a company how much compensation comparable firms are paying for specific jobs that the firms have in common.