Exhibit 10-5 -In the Long Run, the Firm in Exhibit 10-5 Can

Multiple Choice

Exhibit 10-5
-In the long run, the firm in Exhibit 10-5 can expect

A) to shut down
B) entry into the industry which will reduce the demand for their product and lower their profit
C) exit from the industry which will increase demand for their product and increase their profitability
D) competitors to differentiate their products which will reduce the demand for their product and lower their profit
E) no change in the industry