The Figure Shows a Representative Firm in a Price-Taker Market

question 146

Multiple Choice

The figure shows a representative firm in a price-taker market. Which of the following is true regarding the situation depicted in the figure?

• A) This firm shown is earning zero economic profit.
• B) The industry is in long-run equilibrium.
• C) Firms will neither enter nor exit the market.
• D) All of the above are true.

---

Definitions:

Proof Statements

Assertions or declarations designed to demonstrate or verify the truth of something, often used to substantiate claims in logic and mathematics.

Independent Research

The process of investigating a topic, problem, or question without direct supervision or influence, relying on one's initiative and resources to find answers or solutions.

Past Sales Figures

Historical data reflecting the quantity of products or services sold in previous periods, often used for trend analysis and forecasting.

Testimonials

Statements or endorsements by satisfied customers praising the value of a product or service, used as a marketing tool.