In Figure 23.3, diagram "a" presents the cost curves that are relevant to a firm's production decision, and diagram "b" shows the market demand and supply curves for the market.Use both diagrams to answer the following question: In Figure 23.3, at a price of p3 in the long run
A)Firms will enter the market.
B)Economic profits equal zero.
C)Firms will exit the market.
D)P = ATC.

Question

In Figure 23.3, diagram "a" presents the cost curves that are relevant to a firm's production decision, and diagram "b" shows the market demand and supply curves for the market.Use both diagrams to answer the following question: In Figure 23.3, at a price of p3 in the long run
A)Firms will enter the market. 
B)Economic profits equal zero. 
C)Firms will exit the market. 
D)P = ATC.

Quizplus · Accepted Answer

The Answer of  In Figure 23.3, diagram "a" presents the cost curves that are relevant to a firm's production decision, and diagram "b" shows the market demand and supply curves for the market.Use both diagrams to answer the following question: In Figure 23.3, at a price of p3 in the long run
A)Firms will enter the market. 
B)Economic profits equal zero. 
C)Firms will exit the market. 
D)P = ATC.