Figure 9-13 -Refer to Figure 9-13.Suppose the Prevailing Price Is P₁ and Price

question 103

Multiple Choice

Figure 9-13

-Refer to Figure 9-13.Suppose the prevailing price is P₁ and the firm is currently producing its loss-minimizing quantity.If the firm represented in the diagram continues to stay in business,in the long-run equilibrium

• A) it will reduce its output to Q₀ and face a price of P₀.
• B) it will continue to produce Q₁ but faces the higher price of P₂.
• C) it will expand its output to Q₂ and face a price of P₂.
• D) it will expand its output to Q₃ and face a price of P₁.

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