Figure 14-10 -Refer to Figure 14-10.If the Price Is P3 in the P3

question 11

Multiple Choice

Figure 14-10
-Refer to Figure 14-10.If the price is P3 in the short run,what will happen in the long run?

• A) Nothing.The price is consistent with zero economic profits,so there is no incentive for firms to enter or exit the industry.
• B) Individual firms will earn positive economic profits in the short run,which will entice other firms to enter the industry.
• C) Individual firms will earn negative economic profits in the short run,which will cause some firms to exit the industry.
• D) Because the price is below the firm's average variable costs,the firms will shut down.

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Definitions:

Removed Liver Tissue

Liver tissue that has been surgically excised, typically for medical examination or to remove a diseased segment.

Labile Cells

Cells that undergo continuous division and can be rapidly replaced, such as those found in the skin, blood, and lining of the gut.

Hemopoietic Tissue

Tissue responsible for the formation of blood cells, found in the bone marrow and other sites.

Red Bone Marrow

The soft tissue inside bones where blood cells are produced, including red blood cells, white blood cells, and platelets.