Refer to the information provided in Figure 9.7 below to answer the questions that follow. Figure 9.7
-Refer to Figure 9.7. If demand for wheat is D1, then in the long run
A) the firm will increase its price and output.
B) the firm will exit the industry.
C) new firms will enter the industry, and the current firms will expand production.
D) firms will increase their output so that their average fixed cost per unit falls.

Question

Refer to the information provided in Figure 9.7 below to answer the questions that follow.  Figure 9.7
-Refer to Figure 9.7. If demand for wheat is D1, then in the long run
A) the firm will increase its price and output. 
B) the firm will exit the industry. 
C) new firms will enter the industry, and the current firms will expand production. 
D) firms will increase their output so that their average fixed cost per unit falls.

Quizplus · Accepted Answer

The Answer of Refer to the information provided in Figure 9.7 below to answer the questions that follow.  Figure 9.7
-Refer to Figure 9.7. If demand for wheat is D1, then in the long run
A) the firm will increase its price and output. 
B) the firm will exit the industry. 
C) new firms will enter the industry, and the current firms will expand production. 
D) firms will increase their output so that their average fixed cost per unit falls.

Refer to the Information Provided in Figure 9