Suppose a Typical Firm in a Competitive Industry Has the Following

question 90

Multiple Choice

Suppose a typical firm in a competitive industry has the following data in the short run: price = $10; output = 100 units; ATC = $8; AVC = $7.What will likely happen in the long run?

• A)In the long run the industry will expand because firms are earning economic profits.
• B)In the long run the industry will contract because firms are suffering losses.
• C)The size of the industry will remain the same in the long run.
• D)The typical firm would shut down,until the remaining firms have a higher price.
• E)There is not enough information to formulate an answer.

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Definitions:

Personal Health Record

An individual's health documents maintained by the patient, containing medical history, treatments, and test results.

Owned By

The state or condition of being legally recognized as the proprietor or holder of rights to a property or asset.

Patient

An individual who receives medical attention, care, or treatment from healthcare professionals.

Electronic Record

Digital form of a patient's medical history or health information, enabling easier storage, access, and sharing among healthcare providers.