Figure 7.13
-Refer to Figure 7.13.Suppose a typical firm in a perfectly competitive market is earning economic profits in the short run.Which of the diagrams in the figure depicts what happens in the industry as it transitions to a long-run equilibrium?
A) Panel A
B) Panel B
C) Panel C
D) Panel D

Question

Figure 7.13 
-Refer to Figure 7.13.Suppose a typical firm in a perfectly competitive market is earning economic profits in the short run.Which of the diagrams in the figure depicts what happens in the industry as it transitions to a long-run equilibrium?
A) Panel A 
B) Panel B 
C) Panel C 
D) Panel D

Quizplus · Accepted Answer

The Answer of Figure 7.13 
-Refer to Figure 7.13.Suppose a typical firm in a perfectly competitive market is earning economic profits in the short run.Which of the diagrams in the figure depicts what happens in the industry as it transitions to a long-run equilibrium?
A) Panel A 
B) Panel B 
C) Panel C 
D) Panel D

Figure 7.13 -Refer to Figure 7.13.Suppose a Typical Firm in a Perfectly