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