Figure 9-16 $/q MC 6.70 6.00 ATC 4.90 AVC d = MR 4.00 2.80 2.60 b. 6 8 12 14 If the price-taker firm in Figure 9-16 2-16.png is producing at the profit maximizing rate of output, then which of the following are true? O The ferm is making zero economic profits and the industry is in long-run equilibrium The firm is making a positive economic proht and new firms will enter the industry in the long run The firmis making an economic loss and firms will exit the industry in the long run 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
Figure 9-16 $/q MC 6.70 6.00 ATC 4.90 AVC d = MR 4.00 2.80 2.60 b. 6 8 12 14 If the price-taker firm in Figure 9-16 2-16.png is producing at the profit maximizing rate of output, then which of the following are true? O The ferm is making zero economic profits and the industry is in long-run equilibrium The firm is making a positive economic proht and new firms will enter the industry in the long run The firmis making an economic loss and firms will exit the industry in the long run 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
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
1
Transcribed Image Text:Figure 9-16
$/9
MC
6.70
6.00
ATC
4.90
AVC
d = MR
4.00
%3D
2.80
2.60
6 8
12 14
If the price-taker firm in Figure 9-16 9-16.RDg is producing at the proft 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
O The firm is making a positive economic profit and new firms will enter the industry in the long run
The firmis making an economic loss and firms will exit the industry in the long run
* 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 fong-run
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education