Multiple Choice
Figure 12-13
-Refer to Figure 12-13.Suppose the prevailing price is P₁ and the firm is currently producing its loss-minimizing quantity.If the firm represented in the diagram continues to stay in business, in the long-run equilibrium
A) it will reduce its output to Q₀ and face a price of P₀.
B) it will continue to produce Q₁ but faces the higher price of P₂.
C) it will expand its output to Q₂ and face a price of P₂.
D) it will expand its output to Q₃ and face a price of P₁.
Correct Answer:
Verified
Correct Answer:
Verified
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