$/4 MC 6.70 6.00 ATC 4.90 4.00 AVC d = MR 2.80 2.60 6 8 12 14 If the price-taker firm in Figure 9-16 9-16.png is producing at the profit maximizing rate of output, then which of the following are true? O The firm is making zero economic profits and the industry is in long- run equilibrium The firm is making a positive economic profit and new firms will enter the industry in the long-run O The firmis making an economic loss and firms will exit the industry in the long run O The firm is making a positive economic profit, but high barriers to entry will keep potential competitors out of the market so it can continue to make positive economic profits in the long-run

$/4 MC 6.70 6.00 ATC 4.90 4.00 AVC d = MR 2.80 2.60 6 8 12 14 If the price-taker firm in Figure 9-16 9-16.png is producing at the profit maximizing rate of output, then which of the following are true? O The firm is making zero economic profits and the industry is in long- run equilibrium The firm is making a positive economic profit and new firms will enter the industry in the long-run O The firmis making an economic loss and firms will exit the industry in the long run O The firm is making a positive economic profit, but high barriers to entry will keep potential competitors out of the market so it can continue to make positive economic profits in the long-run

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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