The Following Figure Represents the Cost Curves of Two Firms

question 25

Multiple Choice

The following figure represents the cost curves of two firms operating in different perfectly competitive industries. This economy consists only of industries 1 and 2.

-Refer to the figure above.If the market price in industry 1 is $3 and the market price in industry 2 is $4,we should expect ________ in the long run.

• A) firm A to exit industry 1 and enter industry 2
• B) firm B to exit industry 2 and enter industry 1
• C) firm A to exit industry 1 and not enter industry 2
• D) both firms to stay in their respective industries

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Definitions:

Panic Disorder

A psychiatric disorder marked by sudden and repeated episodes of intense fear or discomfort, known as panic attacks, often without apparent cause.

Comorbid

Co-occurring; used to describe the presence of two or more diseases or medical conditions in the same patient.

Somatic Symptoms

Physical symptoms that are perceived or experienced but cannot be fully explained by a general medical condition.