Multiple Choice
Suppose that Betty's Beads is a typical firm operating in a perfectly competitive market. Currently Betty's MR = $15, MC = $12, ATC = $10, and AVC = $8. Based on this information, we can conclude that
A) Betty's is in long-run equilibrium.
B) potential new firms will be encouraged by Betty's success to enter the market.
C) some existing firms in this market will leave.
D) potential new firms will be discouraged by Betty's struggles and not enter the market.
Correct Answer:
Verified
Correct Answer:
Verified
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