Question

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Refer to the figure at right. This firm is operating in the A. short run since economic profits are greater than zero. B. long run since economic profits are greater than zero. C. long run since econo

Answer 1

In the short run, the graph looks like just like the graph for a monopoly, with the firm making an economic profit. In the long run, however, firms will enter the industry and cause the demand curve to shift to the left, which results in no economic profit