The graph shown displays the cost curves for a firm in a perfectly competitive market. If the market price is $100, which of the following statements is true?graph_q10This firm will earn positive profits in the short run.In the long run, the market supply curve will increase.Profits for this firm will decrease in the long run. I only I and II I and III I, II and III

This firm will earn positive profits in the short run.This statement is true. At a market price of…

Answered: The graph shown displays the cost…

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter22: Perfect Competition

Section: Chapter Questions

Problem 10WNG

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The graph shown displays the cost curves for a firm in a perfectly competitive market. If the market price is $100, which of the following statements is true?graph_q10

This firm will earn positive profits in the short run.
In the long run, the market supply curve will increase.
Profits for this firm will decrease in the long run.

I only
I and II
I and III
I, II and III

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In a perfectly competitive market, when the price is greater than the minimum average total cost for most firms, some firms will _______ the market until the price ______ to equal the minimum average total cost.

exit; falls
enter; falls
exit; rises
enter;rises

he graph, is it still answer 1 only?

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