The Figure Depicts a Firm in a Price-Taker Market

question 125

Multiple Choice

The figure depicts a firm in a price-taker market. Use this figure to answer the following question(s) .
Figure 9-18

Refer to Figure 9-18. Given the current market conditions, in the long run,

• A) new firms will enter the industry and market price will fall.
• B) firms will exit the industry and market price will rise.
• C) firms will neither enter nor exit because the market is in long-run equilibrium.
• D) firms will maintain their current level of economic profit.

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Definitions:

U.S. Dollars

The official currency of the United States, used for most transactions and considered a standard measure of value.

Japanese Yen

Japanese Yen is the official currency of Japan, known internationally by the ISO code JPY.

U.S. Dollars

The currency of the United States of America, used as the standard unit of money in international trade and domestic transactions.

Airline Ticket

A document, either electronic or paper, issued by an airline to confirm an individual's entitlement to a seat on a flight.