Figure 8.7.1 -Refer to Figure 8.7.1 Above. When Market Price Equals $40

Multiple Choice

Figure 8.7.1
-Refer to Figure 8.7.1 above. When market price equals $40, we can expect:

A) exit of firms and a decrease in market price.
B) entry of firms and a decrease in market price.
C) exit of firms and an increase in market price.
D) entry of firms and an increase in market price.