Use the Following to Answer Question(s): the Restaurant Model

Multiple Choice

Use the following to answer question(s) : The Restaurant Model

-(Exhibit: The Restaurant Market) The exhibit shows curves facing a typical restaurant in a community.Assume that the market is characterized by many firms, differentiated products, easy entry and easy exit.In long-run equilibrium, the economic profit earned by the typical restaurant in the community will be:

A) negative.
B) zero.
C) equal to the level shown in the exhibit.
D) There is not enough information given to answer the question.