Graph 17-4 -Refer to Graph 17-4.Which of the Markets Depicted in Each

question 79

Multiple Choice

Graph 17-4
-Refer to graph 17-4.Which of the markets depicted in each panel is likely to see firms exit in the long run?

• A)panel A
• B)panel B
• C)panel C
• D)panel D

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Definitions:

Market Price

is the current price at which an asset or service can be bought or sold in the open market.

Marginal Cost

The elevation in aggregate expenditure triggered by the output of one supplementary unit of a good or service.

Profit

The financial gain obtained when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.

Sales Revenue

The total amount of money generated from the sale of goods or services before any costs or expenses are deducted.