Use the Figure Below to Answer the Following Questions

question 111

Multiple Choice

Use the figure below to answer the following questions.

Figure 12.4.1
-Refer to Figure 12.4.1, which shows the cost curves and marginal revenue curve of a firm in a perfectly competitive market. In the long run,

• A)firms that remain in the market will expand production.
• B)market demand will increase.
• C)market supply will increase.
• D)firms will enter the market.
• E)firms that remain in the market will reduce production.

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Definitions:

Higher Prices

Increased costs for goods or services, often resulting from factors like high demand, low supply, or increased production costs.

Clicks-And-Mortar

Refers to businesses that combine online digital presence (clicks) with physical storefronts (mortar) to offer a comprehensive retail experience.

E-Book

A digital format of a book, accessible on electronic devices such as e-readers, tablets, and computers.

Degree of Digitization

The extent to which processes, operations, or systems are converted or adapted to digital form, impacting efficiency, accessibility, and innovation.