14 In the long run we should expect: A) firms to enter the industry, market supply to rise, and product price to fall. B) firms to leave the industry, market supply to rise, and product price to fall. C) firms to leave the industry, market supply to fall, and product price to rise. D) no change in the number of firms in this industry. Quant :} Refer to the following diagram to answer ques- The figure shown depicts the cost structure of a tions 15-16 profit maximizing firm in a competitive market. Use the figure to answer questions 11-12 MC ATO 11 Which line segment best reflects the short-run supply curve for this firm? a. ABC BCD C. CDE b. d. DE 12. Excessive profits in this firm would exist in 02 which of the line segments? Chuantly A) AC B) CD C) CE D) DE 15. At output Q, this firm will A) suffer an economic loss. Refer to the following graphs for questions 13-14 earn a normal profit. earn an economic profit. break even from an accounting point of view Write answers 16-21 on the back of the quiz strip 16. At output Q this firm is A) neither productive nor allocation efficient B) C) both productive and allocation efficient allocation efficient, but not productive effi- 13. Refer to the above diagrams, which cient pertain to a purely competitive firm producing D) productive efficient, but not allocation ef- output q and the industry in which it operates. filcient . Which of the following is correct? A) The diagrams portray neither long-run nor Define the following by writing a definition, using symbols, equations, or graphs short-run equilibrium. B) The diagrams portray both long-run and 17. Short Run equilibrium for a firm short-run equilibrium. C) The diagrams portray short-run equilibrium, 18. Short run equilibrium for an industry 19. Long run equilibrium for a firm but not long-run equilibrium. 20. MR=MC ATC but not short-run equilibrium. 22. Zero (normal profit)