Figure 7-13 -Figure 7-13 Shows the Average Total Cost Curves of Four

Multiple Choice

Figure 7-13

-Figure 7-13 shows the average total cost curves of four firms that produce milk.Some of the dairies are more productive.AR = P is the long-run price of milk.How many of these dairies will remain in the industry in the long run?

A) all of them 
B) only 2 
C) only 3 
D) cannot determine with information given