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Suppose That Betty's Beads Is a Typical Firm Operating in a Perfectly

Question 215

Multiple Choice

Suppose that Betty's Beads is a typical firm operating in a perfectly competitive market. Currently Betty's MR = $25, MC = $23, ATC = $20, and AVC = $16. Based on this information, we can conclude that


A) Betty's is in long-run equilibrium.
B) Betty's experience will encourage new firms to enter the market.
C) Betty's experience will encourage some existing firms in this market to leave.
D) Betty's experience will discourage firms from entering the market.

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