Figure 12-11 -Refer to Figure 12-11.Suppose the Prevailing Price Is $20 and Price

question 114

Multiple Choice

Figure 12-11

-Refer to Figure 12-11.Suppose the prevailing price is $20 and the firm is currently producing 1,350 units.In the long-run equilibrium, the firm represented in the diagram

• A)will continue to produce the same quantity.
• B)will reduce its output to 1,100 units.
• C)will reduce its output to 750 units.
• D)will cease to exist.