In Figure 23

question 103

Multiple Choice

In Figure 23.3, diagram "a" presents the cost curves that are relevant to a firm's production decision, and diagram "b" shows the market demand and supply curves for the market.Use both diagrams to answer the following question: In Figure 23.3, at a price of p2 in the long run

• A) Firms will enter the market.
• B) Economic profits equal zero.
• C) Firms will exit the market.
• D) P = AVC.