Refer to Figure 23.5 for a perfectly competitive firm.If this firm produces the level of output corresponding to point B in the short run,it will earn
A)Zero economic profit.
B)The maximum profit possible.
C)A profit,although not the maximum profit possible.
Refer to Figure 23.5 for a perfectly competitive firm.Given the current market price of $200,we expect to see
A)Firms exit from the industry,driving up the market price.
B)Firms exit from the industry,driving down the market price.
C)No change in the number of firms in the industry and no change in the market price.
D)Firms enter the industry,driving down the market price.
Refer to Figure 23.5 for a perfectly competitive firm.Which of the following is not true for this firm at a price of $200?
A)The firm is using the fewest resources possible to produce each unit of output.
B)The firm is practicing marginal cost pricing.
C)The price is a reflection of the highest-valued good that could have been produced with the resources the firm used for the last unit it produced.
D)The firm should leave this market in an effort to earn economic profits.
Refer to Figure 23.5 for a perfectly competitive firm.If more efficient production techniques were developed in this market,which of the following changes would we expect to occur,ceteris paribus?
A)The ATC,MC,and market price would all decrease.
B)The ATC alone would decrease.
C)The ATC,MC,and market price would all increase.
D)The ATC alone would increase.