Use the Following to Answer Questions

question 48

Multiple Choice

Use the following to answer questions:
Figure: The Market for Gas Stations
-(Figure: The Market for Gas Stations) Look at the figure The Market for Gas Stations. This market is characterized by many firms, differentiated products, easy entry, and easy exit. In long-run equilibrium, the economic profit earned by the typical gas station will be:

• A) equal to the level shown in the figure.
• B) negative.
• C) zero.
• D) Not enough information is given to answer the question.