Figure 8.11 -Refer to Figure 8.11.Suppose the Prevailing Price Is P₁ and Is

question 83

Multiple Choice

Figure 8.11
-Refer to Figure 8.11.Suppose the prevailing price is P₁ and the firm is currently producing its loss-minimising 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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