Graph 14-8

question 94

Multiple Choice

Graph 14-8
-Refer to Graph 14-8.If the figure in panel (a) reflects the long-run equilibrium of a profit-maximising firm in a competitive market, the figure in panel (b) most likely reflects:

• A)perfectly inelastic long-run market supply
• B)the product of individual firm supply curves for all firms in the market
• C)the idea that free entry and exit of firms in the market lead to only one market price in the long run
• D)zero profits cannot be sustained in the long run