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

question 193

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:

Trade with Great Britain

The exchange of goods, services, and capital between Great Britain and other countries, historically significant for its impact on global trade patterns.

Bribe

An illicit payment made to someone to persuade them to act in one's favor by doing something dishonest or illegal.

Support Shift

A change in public or organizational support, often referring to political, social, or economic preferences shifting among individuals or groups.

Washington, D.C.

The capital city of the United States, known for being the seat of the federal government, including the President, Congress, and the Supreme Court.