Below,the Graph on the Left Shows the Short-Run Cost Curves

question 83

Multiple Choice

Below,the graph on the left shows the short-run cost curves for a firm in a perfectly competitive market,and the graph on the right shows the current market conditions in this industry.What do you expect to happen in the long-run?

• A)Market supply will decrease.
• B)Market price will decrease.
• C)The firm's profit will decrease.
• D)both b and c
• E)all of the above

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Definitions:

Nonrenewable Resource

A natural resource that cannot be replenished or regenerated at the same rate at which it is consumed, such as oil, natural gas, and minerals.

Ethanol

A renewable fuel made from various plant materials collectively known as "biomass."

Economically Viable

A situation or project that is financially sustainable, able to generate revenue that exceeds its operating costs.

Nonrenewable Natural Resource

A natural resource that cannot be replaced or replenished once it is extracted or consumed, such as fossil fuels or minerals.