Figure 12-7 the Graphs in Figure 12-7 Represent the Perfectly

question 135

Multiple Choice

Figure 12-7 The graphs in Figure 12-7 represent the perfectly competitive market demand and supply curves for the apple industry and demand and cost curves for a typical firm in the industry.
-Refer to Figure 12-7.Which of the following statements is true?

• A)The current market price is $3 but the firm will be able to increase the price in the future.
• B)The current market price is $3 but the price will fall in the long-run as a result of a decrease in demand.
• C)The current market price is $3 but the price will fall in the long-run as new firms enter the market.
• D)The current market price is $3 but the price will increase in the future as the market demand increases.

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Definitions:

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