Exhibit 8.11 -Refer to Exhibit 8.11,which Shows a Perfectly Competitive Firm in Perfectly

Multiple Choice

Exhibit 8.11

-Refer to Exhibit 8.11,which shows a perfectly competitive firm in an increasing-cost industry.Suppose long-run equilibrium settles at d_c.At point of c,in the long-run,the firm _____

A) does not earn an economic profit.
B) earns an economic profit.
C) does not earn a normal profit.
D) earns a normal profit.
E) has a lower average total cost.