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The Figure Shows a Representative Firm in a Price-Taker Market

Question 302

Multiple Choice

The figure shows a representative firm in a price-taker market. Which of the following is true regarding the situation depicted in the figure?
The figure shows a representative firm in a price-taker market. Which of the following is true regarding the situation depicted in the figure? A) This firm shown is earning zero economic profit. B) The industry is in long-run equilibrium. C) Firms will neither enter nor exit the market. D) All of the above are true.


A) This firm shown is earning zero economic profit.
B) The industry is in long-run equilibrium.
C) Firms will neither enter nor exit the market.
D) All of the above are true.

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