Figure 12-17 The Graphs in Figure 12-17 Represent the Perfectly Competitive Market

Multiple Choice

Figure 12-17

The graphs in Figure 12-17 represent the perfectly competitive market demand and supply curves for the apple industry and demand and cost curves for a typical firm in the industry.
-Refer to Figure 12-17.The graphs depict a short-run equilibrium.How will this differ from the long-run equilibrium? (Assume this is a constant-cost industry.)

A) Fewer firms will be in the market in the long run than in the short run.
B) The price will be higher in the long run than in the short run.
C) The market supply curve will be further to the left in the long run than in the short run.
D) The firm's profit will be lower in the long run than in the short run.