Use the following to answer question:
Figure: Comparing Long-Run Equilibriums
-(Figure: Comparing Long-Run Equilibriums)Use Figure: Comparing Long-Run Equilibriums.Which statement is TRUE?
A)Firms in the market structure shown in panel (a)cannot have profits in the long run,but those in panel (b)can.
B)Both panels show markets that have few interdependent firms.
C)Both panels show markets that produce identical products.
D)Both panels show markets that have many firms.

Question

Use the following to answer question:
Figure: Comparing Long-Run Equilibriums 
-(Figure: Comparing Long-Run Equilibriums)Use Figure: Comparing Long-Run Equilibriums.Which statement is TRUE?
A)Firms in the market structure shown in panel (a)cannot have profits in the long run,but those in panel (b)can. 
B)Both panels show markets that have few interdependent firms. 
C)Both panels show markets that produce identical products. 
D)Both panels show markets that have many firms.

Quizplus · Accepted Answer

Both panels show markets that have many firms, indicating a competitive market structure where firms are price takers and produce similar or identical products.

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