Exhibit 8.11 -Refer to Exhibit 8.11,which Shows a Perfectly Competitive Firm in Perfectly

question 23

Multiple Choice

Exhibit 8.11

-Refer to Exhibit 8.11,which shows a perfectly competitive firm in an increasing-cost industry.Suppose market demand increases to d_b.At point of b,in the short-run,the firm _____

• A)does not earn an economic profit.
• B)earns an economic profit.
• C)does not earn a normal profit.
• D)earns a normal profit.
• E)has a lower average total cost.